Housing Development Finance Corp. bonds or debentures held by insurers will continue to be classified in the housing infrastructure category.
The HDFC bonds held by insurers on the date that the HDFC Ltd.-HDFC Bank Ltd. merger was announced—April 4, 2022—will continue to be classified under the housing and infrastructure category till maturity, according to a circular from the Insurance Regulatory and Development Authority of India.
The insurers are also exempt from complying with the single investee equity exposure norms with respect to shares of HDFC Bank after the merger till June 30, 2024.
The exemption, after June 30, 2024, will be scaled down to the extent of the sale of shares, the circular said.
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