Investment in Units of “Real Estate Investment Trusts (REIT) &Infrastructur

Date: 14th Mar, 2017 • Al INSURANCE REGULATORY AND illlai DEVELOPMENT AUTHORITY OF INDIA CIRCULAR REF: IRDAI/CIR/F&I/INV/ l'.)5& /03 /2016-17 The Authority under Section 14 (2) (k) of IRDA Act, 1999, issues the following amendment to Master Circular - Investments, 2016, which shall be effective from the date of issue of this Circular: Investment in Units of "Real Estate Investment Trusts {REIT) & Infrastructure Investment Trusts (lnvlT)" 1. Insurers can invest in Units of REITs / lnvlTs which conform to the following: i. The REIT / lnvlT rated not less than "AA" shall form part of Approved Investments. REIT / lnvlT rated less than AA shall form part of Other Investments. ii. An Insurer can invest not more than 3% of respective fund size of the Insurer (or) not more than 5% of the Units issued by a single REIT / lnvlT, whichever is lower. iii. No investment shall be made in REIT /lnvlT where the Sponsor is under the Promoter Group of the Insurer iv. Investment in Units of lnvlT will form part of "Infrastructure Investments", for the purpose of Pattern of Investments under IROAI (Investment) Regulations v. Investment in Units of REIT will form part of "Investment property" as per Note 6 to the Regulation 9 of IRDAI (Investment) Regulations, 2016 read along with Master Circular- Investments 2. The Investment in Units of REIT/ lnvlTs shall be valued at Market Value (last Quoted price should not be later than 30 days). Where Market Quote is not available for the last 30 days, the Units shall be valued as per the latest NAV (not more than 6 months old) of the Units published by the trust 3. The Category Codes (COi) applicable for Investment in the Units of REITs and lnvlTs are: Units of REITs / lnvlTs - Approved Investments 040: Units of Real Estate Investment Trust (REITs) D41 : Units of lnvlT ERIT EIIT -qtt~ ,rcr-:r, <'irno m9, ~. ~ - 500 004. \fRo (l) : 91-040-2338 1100, ~: 91-040-6682 3334 { -~: irda@irda.gov.in ~: www.irda.gov.in Parisharam Bhavan, 3rd Floor, Basheer Bagh, Hyderabad-500 004. India. Ph.: 91-040-2338 1100, Fax: 91-040-6682 3334 E-mail : irda@irda.gov.in Web.: www.irda.gov.in ~ Units of REITs / lnvlTs - Other Investments E29: Units of Real Estate Investment Trust (REITs) E30: Units of lnvlT ORIT OIIT 4. The Concurrent Auditor in his Quarterly Report to the Audit Committee I Board of the Insurer shall confirm compliance to the above norms and disclosure requirements. £\{LA :...-::---. V R IYER Member (F&I)