Investment in REITs and InvITs by Insurers

भारतीय बीमा विनियामक और विकास प्राधिकरण INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA CIRCULAR

Date: $14^{\text{th}}$ Mar, 2017

REF: IRDAI/CIR/F&I/INV/ $056$ /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 (InvIT)"

1. Insurers can invest in Units of REITs / InvITs which conform to the following:

• (i) The REIT / InvIT rated not less than "AA" shall form part of Approved Investments. REIT / InvIT 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 / InvIT, whichever is lower.
• (iii) No investment shall be made in REIT / InvIT where the Sponsor is under the Promoter Group of the Insurer
• (iv) Investment in Units of InvIT will form part of "Infrastructure Investments", for the purpose of Pattern of Investments under IRDAI (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 / InvITs 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 InvITs are:

Units of REITs / InvITs - Approved Investments D40: Units of Real Estate Investment Trust (REITs) - ERIT D41: Units of InvIT - EIIT

Units of REITs / InvITs - Other Investments E29: Units of Real Estate Investment Trust (REITs) - ORIT E30: Units of InvIT - OIIT

4. The Concurrent Auditor in his Quarterly Report to the Audit Committee / Board of the Insurer shall confirm compliance to the above norms and disclosure requirements.

[Image omitted. See the official document.]

V R IYER Member (F&I)

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