IRDA (Investment) (Amendment) Regulations, 2001

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[>WT lll-~41 INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY NOTIFICATION New Delhi. the 31st May. 2001 F.No. IRDA/Reg/5/2001 . . !11 exercise of 1he p,,wer., w11ferred by secll,ms 27A, 278, 17D and 11./.-1 u( the Insurance Au, /936 (./ of /938). the fo1/u,"'1ty. 111 co11sulratio11 wtth the Insurance 1dviso,y Co1111111ttee, hereby makes the following reg11/at1011.1· to amend the /J1s1!ra1rce Regulatory and Del'elopmelll Authontv (/11ve.1·1ment) Regula/Ions, 1000, name/1 - I (I) These regu1auon:s may be called the Insurance Re1:,'l.llatory and Oc1·elopmcnt Authority (Investment) (Amendment) R~1:,rula11ons. 2001 (2) The} shall come mto force on the date of their pubhcat10n m tJ1c Official G:uette 2 In the Insurance Regulato~ and Dc\'elopment AuLhomy (lnYestm:nt) Regulations. 2000. - After Clause (b) of Regulauon 2. the following clause shall be added.- .. (ba) Assets· means all the assets of insurer. at their carrylllg ,alue, shown m his Balance Sheet drawn in Form B-BL of the Insurance Regulator} and De\'elopment Authority (Preparation of Fmancial Statements and Auditors· Report of lnsumnce Compamcs) Regulal1ons, 2000, but excluding items under t11e head ·M1scellaneous Expenditw·e·· 1 For the ex1st111g regulauon 1. the follo\l"lng l>hall be subs11tuted - "3.Regulaton of Investments (1) Life Business: In tenns of explanation m Section 27 A f tJ relatmg to Pension business, Annuity business and Link,/ Lt !Act lh: AutJ1_onl) has detem1med l11at assets Controlled Fund for Ille purpose of lhal section. C I e nsurcll1cc busrncss sl1all not form pan of the Without prqud1cc Lo Section 27 or Section 27A of the Ac E ., · insurance shall mvcst ,md at all limes keep m,·c t d I t. - ,cry rnsurcr cany111g 011 111c bus111ess of l1fc- gcneral annuity business and unir linked hfe ms:1~1c~sb~1~::~~~~)e~11fu1l1ned "o(ollt101cr l11an funds relating to pension ,md • • 11 ,, 111g maru1cr / SNo Type of lnvcsuncnt Percen1<1gc i) Go,·ernmenr Sccuri11es 25% Ii) Govemn,ent Secur1ues or 01J1er approved Secunt1cs (including (1) abO\·e) Not less than 50% I 15 )6 TiiE GAZElTE OF INDIA : EXTRAORDINARY [PART III-SEC. 4) iii) Approved Investments as specified in Schedule I a) Infrastructure and Social Sector Not less than 15% Explanation. For the purpose of this requirement, Infrastructure and Social Sector shall have the meaning as given in regulation 2(h) of Insurance Regulatory and Development Authority (Registration of Indian l)'5urance Companies) Regulattons, 2000 and as defined m the Insurance Regulatory and Development Authority (Obligations of Insurers to Rural and Social Sector) Regulations, 2000 respectively b) Others to be governed by Exposure Not exceeding 35% nonns as specified in regulation 5. lnvestmeni in "other than approved Investments" can m no case exceed 15% of the fund (2) ' Pension and General Annuity Business': Every insurer shall invest and at all times keep mvested funds belonging to his Pension Businc~s. General Annuity Business in the following manner - SI.No. Type of Investment (i) Government Securities, being not less than (ii) Government Securities or otncr approved Percentage 20% 40% securities (inclusive (I) abo\'e, being not less than) (iii) Balance to be invested 111 Approved Investments Not exceeding 60% as specified in Schedule I and to be governed by Exposure/Prudcnual l\J"rrns specified in Regulation 5 Note : For the purposes of this sub-regula1ion no unapproved investments shall be made. (3) 'Unit Lmkcd Life Insurance 811~,nrss·: Every insurer shall invest and at all timt.:s keep invesu:d his segregated fund of unit linked llfo insurance ~usiness as per pattern of investment offered to and approved by the policyholders. Unit Linked policies may only be offered where the units arc lmked to categories of asscts which arc both marketahk and c.isily rcali✓.ahle. I Iowcvcr the total investment in other than appro\e<l c,!lcgory of investmenis shall ,ll no t1111c l'\Cel.'d 25% of 1hc fund 4. For the existing regula:1on 4, the follO\\ ing shall be substitutcd:- '"4.J~lllation of Investments 4( I) General Business: Without prejudice to C,ection 27 or Section 278 of the Act, - Every insurer carrymg on the business of general insurance shall invest and al all limes keep invested his total assets m 1he manner sct out below: S.No i) ii) iii) Type of Investment Central Government Sccu, 111es being 1101 less than State Government securtttes and other Guaranteed Securities mcluding til above bcing not less than Housing an<l Loans to State Government for Housing And Fire Fighting equipment. being not less than. (Subscription to/pun.:ha,e ol Bonds/debcntures issued by IIUDCO. National llousmg Bank or House bu1h1ing institutions duly accredited b} National Housing l3ani-.s. for house huilding ;11:11vitics, duly guaranteed hy Govemmclll or c.11 r) 111g current rating of not less than ·AA• by independent. rcpured and recognised rating Percentage 20% agencies would also qualify for compliance of this regulation.) iv) Investments m Approved Investments as specified in Schedule II a) Infrastructure and Social Sector Not less than 10% Explanation: For the purpose ofth1s requirement, Infrastructure and Social Sector shall have the meaning as given in regulation 2(h) of Insurance Regulatory and Development Authority (Registration of Indian Insurance Companies) Regulations, 2000 and as defined m lhe Insurance Regulatory and Development Authority (Obligations of Insurers to Rural and Social Sector) Regulations, 2000 respectively. b) Others to be governed by Exposure Nonns specified in regulation 5 so however that investment in "other than approved investments" can in no case exceed 25% of the assets. Not exceeding 55% (2)Remsurance Business: Evel) remsurer carrying on reinsurance business in India shall inves1 and at all time5 keep invested his total assets in the same manner as set out in sub-regulation {I), umil such time separate reguiations in this behalf are made by the Authority. Note : For the purpose of the regulations 3 and 4: I. Every insurer shall endeavor to maintain a proper balance between the investments made m infrastructure sector and those m the social sector. Bonds issued for development of these sectors, duly guaranteed by Government or otherwise rated not less than "AA" by independent, reputed and recognised raring agencies, issued by others would qualify for compliance of this regulation. 2 All investment in assets/ instruments, which are capable of being rated as per market practice, be based on rating of such assets/ instruments. 3. The ratmg should be by an independent, reputed and recognised Indian or foreign rating agency. 4. The asset'i/ instruments under consideration for investment, shall be of a grade not less than "AA" of investment grade as per their current rating. In case Investments of this grade are not available to meet the investment requirements of the investing insurance company and investment committee of lhe mvcsting insurance company is fully satisfied about the same, then, for the reasons to be recorded in lhe investment committee's minutes, the investment committee may approve investment in instruments carrying current rating ofnot less than +A. Investments in the +A to be kept to the minimum 5. The rating of Debt Instruments issued by all India fi,nancial institutions recognised as such by RBI may be of 'AAA' or equivalent rating. In case investment of this grade are not available to meet the requirements of the investing insurance company and investment committee of the investing insurance company 1s fully satisfied about the same, then, for the reasons to be recorded m the investment committee's minutes, the investment committee may approve investments in instruments carrying current rating of not less than 'AA' or equivalent as rated by an independent, reputed and recognised Indian or foreign rating agency 6. No investment shall be made in an asset/ instrument, which is capable of being rated as per market practice but has not been rated 7. lnvestmentr in equity shares listed on a recognised stock exchange should be made m actively traded and liquid instruments viz., its trading volume does not fall below ten thousand units in any trading session during the last I 2 months or trading value of which exceeds Rs. IO lacs in any trading session during la!:t 12 months." 17 18 THE GAZETI'E OF INDIA : EXTRAORDINARY (PART III-SEC. 4] 5. For the existing regulation 5 the following shall be substituted:- 5. EXPOSURE/ PRUDENTIAL NORMS Without prejudice to anything contained in sections 27 A and 278 of the Act, every insurer shall investments based on the following exposure norms: limit his Type of Investment Limit for Investee Limit for the entire group (a) All investments m Equity / Preference Shares of the Company (b)Debentures (Convenible / panly convertible/non- convertible) (c) Short/ Medium/ Long term loans (d) Any other permitted investments as per the Act/Regu !a11on Notes Company " to which the Investee Company belongs In the case of Indian Insurance Companies: Exposure at any point of time not to exceed l 0% of the subscribed share capital, free reserves and debentures/ bonds of the investee company or the I 0% of the Insurer's total assets in case of non-Ii fe insurers and 10% of the Controlled funds m case of Life insurers, whichever is less. In the case of existing insurers The limits mentioned above as applicable to the Indian Insurance Companies, shall stand modified as under.• a) exposure at any point of time not to exceed 20% of the subscribed share capital, debentures/ bonds of the investee company or 5% of the Controlled funds of the life insurer or I 0% of the general insurers total assets Exposure at any point of time not to exceed I 0% of the aggregate subscribed share capital, free reserves and debentures of all the group companies in which investments including investments under considerations, have been or proposed to be made by the insurer or the l 0% of the total assets in case of Non-Life Insurers and I 0% of the Controlled Funds m case of Life Insurers whichever is less. The percentage of I 0% of the total assets in the case on Non-Life insurers and 10% of the Controlled Fund in case of Life insurers can be raised to 15% in each case subject to specific approval of IRDA. Limit for the Industry Sector to which the Investee Company belongs Investment by the insurer m any mdustrial sector would not exceed I 0% of its total investment exposure to the industrial sector as a whole. (Classification of Industrial sector to be done on the lines of classification m Industries done by CMIE (Centre for Monitoring Indian Economy) I. Subject to exposure limits as per Insurance Act, 1938, investment in equity including preference shares, investment m equity convertible part of debentures should not exceed 50% of the above exposure norms as mentioned in the table. A similar 50% of exposure norms limit would also apply to investment in immovable property. 2. Subject to exposure hmits mentioned in the table above, an Insurer shall not have investments of more than 5% in aggregate of its Controlled funds in the case of a life insurer or 5% in aggregate of its assets in the case of non-life insurer in the companies belonging to the promoters' groups. For the purposes of this regulation "group" will have the same meaning as in the MRTP Act, 1969 All investments in this category would specifically be referred to the Authority. 6(a) In the existing regulation 6, after the entry at serial number 4 of the table, the following shall be inserted as serial number 5 · ~ 5 Form 3C Exception Report on Quarterly Within 21 days Principal instruments not complying of the end of Officer/Chic, with "AA" or "AAA" grade- each quarter (Investment) Compliance Report 4 7 . I [ 'WI III - ~ 4 ] (b) The existing entry in the table at serial number 5 shall be re-numbered as serial number 6. 7 For the existing regulation 8, the following shall be substituted:- 8. Duty 10 Report extraordinary events affecting the investment portfolio Evel) insurer shall report to the Authority forthwith, the effect or the probable effect of any event coming to his knowledge, which could have material itdverse impact on the investment portfolio and consequently on the securil) of policyholder benefits or expectations. 8. For the existing regulation 9, the following shal I be substituted:- "9. Constitution of Investment Committee (1) Every insurer shall constitute an Investment Committee which shall consist of a minimum of two non- executive directors of the Insurer, the Principal Officer, Chiefs of Finance and Investment divisions, and wherever appointed actuary is employed, the Appointed Actuary. The decisions taken by the Investment Committee shall be properly recorded and be open to inspection by the officers of the Authority. (2) Every insurer shall draw up annually an Investment Policy and place the same before its Board of Directors for its approval. ln framing such a policy, the Board will be guided by i) issues relating to liquidity, prudential norms. exposure limits, stop loss limits in securities trading, management of all investment & market risks, management of assets liabilities mismatch, investment audits and investment statistics. etc. and the provisions of the Insurance Act, 1938 and Insurance Regulatory and Development Authority (Investment) Regulations, 2000. ii) ensuring an adequate return on Policyholders & Shareholders funds consistent with the protection, safety and liquidity of such funds. iii) the funds of the insurer shall be invested anti continued to be invested in equity shares, preference shares and instruments which enjoy a rating referred to in note below regulation 4 and made by a national/international agency; in the absence of a rating for an asset, the Board shall lay down clearly the norms that will be followed by the investment committee which will ensure that the safety and liquidity of the policyholders' funds are assured. (3)The investment policy as approved by the Board will be implemented by the investment committee, which shall keep the Board informed periodically about its activities. (4)The Board shall review its investment policy and its implementation on an half-yearly basis or at such short intervals as it may decide and make such modifications in its existing investment policy as are necessary to bring them in tune with the requirements of law and regulations - in regard to protection of policyholders' interest and pattern of investment laid down. (5) The details of the Investment Policy or its review as periodically decided by the Board shall be submitted to the Authority within 30 days of its decision thereto. The Authority may call for further information from time to time from the insurer as it deems necessary and in the interest of policyholders issue such directions to the insurers as it thinks fit. " 9. For the existing regulation I 0, the following shall be substituted:- " IO Miscellaneous (I) Valuation of Assets and Accounting of Investments shall be as per the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor's Report of Insurance Companies) Regulations, 2000. (2) The Authority may, by any general or special order, modify or change the application of regulations (3), (4), (5) and (6) to any insurer either on its own or on an application made to i1.•· 19 20 THE GAZETTE OF INDIA : EXTRAORDINARY 10 For the existing Schedule I, the following shall be substituted:- Schedule I (See Regulation 3) List of approved Investments for life buo;iness • Approved Investments' for the purposes of section 27 A of the Act shall be as follows: (a) all approved investments specified in section 27A of the Act except (i) clause (b) of sub-section ( I J of section 27 A of the Act; lPART Ill-SEC. 41 (ii) first mortgages on immovable property situated in other country as stated in clause (m) of sub- section (I) of section 27A ,,fthe Act; (iii) immovable property situat1;d in other country as stated in clause (n) of s~b-section (I) of section 27A of the Act. (b) In addition the authority under powers given vide clause (s) of sub-section (I) of section 27 A of the Act declares the following investments as approved investments: (i) All secured loans, secured debentures, secured bonds, other secured debt instruments, shares and preference shares and debt instruments issued by all India Financial Institutions recognised as such by Reserve Bank of India - investments to be made in terms of investment policy guidelines, benchmarks and exposure norms/ limits apprc,ved by the Board of Directors of the insurer. (ii) Subject to nonns/ limits approved by the Board of Directors of the insurers deposics with banks (e.g. in Current account, call deposits, no1i,,e deposits, certificate of deposits etc.) included for the time being in the Second Schedule to Reserve Bank oflndia Act, 1934 (2 of 1934) and d~posits with Primary Dealers duly recognised by Reserve Bank of India as such. (iii) Commercial papers issued by a cc,mpany or all India Financial Institution recognised as such by Reserve Bank of India having a rating by a reputed and independent rating agency under the category of ' very strong' or more; (iv)Treasury Bills issued by RBI, Inter-Hank Repos of RBI and Bills Rediscountmg. Explanation - I. Any investment in the short or medium or long-term loans or deposits with private limited companies shall not be treated as 'approved investments'. 2. All cond11ions mentioned in the ' note' applicable to regulations 3 and 4 are to be complied with." For the existing schedule II, the following shall be substituted:- Schedule II (See Regulation 4) List of approved investments for genern I business 'Approved Investments' for the purpose of section 27B of the Act shall be as follows: (a) All approved investments specified in section 27B of the Act except ( i) clause (b) of sub-section (I) of section 27 A of the Act; (ii) Immovable property situated in other country as stated in clause (n) of sub-section ( I) of section 27 A of the Act; (iii) First mortgages on immovable property situated in other country as stated in clause (i) of sub-section (I) of section 278 of the Act. (b) In addition the authority under powers given vide clause ( j ) of sub-section (I) of section 27B of the Act declares the following investments as approved investments: (1) All secured loans, secured debentures, secured bonds, other secured debt instruments, shares and preference shares and debt instruments issued by all India Financial Institutions recognised as such by Reserve Bank of India - invest111ents to be made in terms of investment policy guidelines, benchmarks and exposure norms/ limits approved by the Board of Directors of an insurer (ii) Subject to norms/ limits approved by the Board of Directors of the insurers deposits with banks (e.g., in current account, call deposit.'>, notice deposits, term deposits. certificate of deposits etc.) included for the time being in the Second Schedule to Reserve Bank of India Act. 1934 (2of 1934) and deposits with Primary Dealers duly recogmsi;tl by Reserve Bank of India as such. (iii) Commercial papers issued by a company or all India Financial Institution recognised as such by Reserve Bank of India havinµ a 'very strong' or more rating by a reputed and independent rating agency: 'Uffl ~ ~ : ~ (iv) Treasury Bills issued by RBI, Inter Bank Repos of RBI and Bills Rediscounting; Explanation - I. Any investment in the short or medium or long-term loans or deposits with private limited companies shall not be treated as 'approved investments'. 2. All conditions mentioned in the 'note' applicable to regulations 3 and 4 are to be complied with." 1 I. The existing Schedule l11 shall be deleted. 12. (a) The existing Form 3A and Form 3B shall be substituted with the following:- Forrn: 3 A Company Name and Code: Statement Date: As at ............... . Statement of investment of Controlled Funds other than funds relating to pension and general annuity business and unit linked life insurance business - Compliance Report to be submitted: Quarterly Life Business INVESTMENT OF CONTROLLED FUND 21 S.No. Type of Investment Percentage Amount Actual% Market Value Invested as per Realisable Value regulations - i) Government Securities 25% ii) Government Securities or -- other Not less than 50% approved securities (including (I) above) iii) Approved Investments a) Infrastructure and Social Sector Not less than 15% i) Infrastructure Sector ii) Social Sector i) ii) b) i)Others to be governed by Exposure Not exceeding i) norms specified in regulation 5 35% ii)Out of the above 35%, percentage of investment in 'Other than ii) Approved Investments' not to exceed 15% Total Investments 100% Statement of Investment of Funds belonging to pension business and general annuity business - Compliance Report to be submitted Quarterly Pension Business, General Annuity Business INVESTMENT OF ASSETS S.No. Type of Investment Percentage Amount Invested as per Actual% Market Value regulations Realisable Value i) Government Securities being not 20% less than ii) Government Securities or other 40% approved securities (including (a) above) being not less than iii) Balance Investments to be 60% invested in Approved Investments not exceeding Total Investments 100% or or 22 THE GAZETTE OF rNDJA: EXTRAORDINARY [PART lIT-SEc. 4) Statement of Investment of "Unit Linked Life Insurance Business" - Compliance Report to be submitted Quarterly Linked Life Insurance Business INVESTMENT OF ASSETS S.No. Type of Investment Percentage Amount Invested per regulations as Actual% Market Value Realisable Value i) Approved Investment Not less than 75% ii) Unapproved Investments Not more than 25% Total Investments 100% CERTIFICATION Certified that the information given herein are correct and complete to the best of my knowledge and belief and nothing has been concealed or suppressed. Date: --- Signature: ____ _______ _ Full Name & Designation Form: 3 B Company Name and Code: Statement Date: As at ............... . Statement of Investment of Total Assets - Compliance Report to be submitted Quarterly General Business INVESTMENT OF TOTAL ASSETS S.No Type of Investment Percentage Amount Invested Actual Market Value or as per regulations % Realisable Value i) Central Government Securities being not less 20% than ii) State Government Securities and other 30% Guaranteed securities including a) above being not less than iii) Housing and Loans to State Govt. for Housing 5% and Fire Fighting Equipment being not less than iv) Approved Investments a) Infrastructure and Social Sector Not less than i) Infrastructure Sector 10% i) ii) Social Sector ii) b) i)Others to be governed by Exposure Norms Not exceeding i) specified in regulation 5 55% ii)Out of the above 55%, investments in other ii) . than Approved Investments not to exceed 25% Total Investments 100% CERTIFiCA TION Certified that the information given herein are correct and complete to the best of my knowledge and belief and nothing has been concealed or suppressed. Date: _ _ _ Signature: __________ _ Full Name & Designation or 13. After the substituted Form 3B the following new Form 3C shall be inserted . .. Fonn: 3 C Company Name and Code: Statement Date: As at ............... . I) Exception Report on Instruments capable of being rated and not complying with "AA" grade and in case of debt instruments issued by All India Financial Institutions not complying with "AAA" grade - Compliance Report to be submitted Quarterly A) Life Business S. Name of Institution Rating Grade of Amount Invested in Dt. of approval by 23 the No Instrument Rating the Instrument the instrument investment Committee and the Instrument reasons thereof B) Pension and General Annuity Business S. Name of Institution Rating Grade of Amount Invested in Dt. of approval by the No Instrument Rating the Instrument the instrument Investment Committee and the Instrument reasons thereof C) Unit Linked Life Insurance Business s Name of Institution Rating Grade of Amount Invested in Dt. of approval by the No lnstrnment Rating the Instrument the instrument Investment Committee and the Instrument reasons thereof D) General Business s. Name of Institution Rating Grade of Amount Invested in Dt. of approval by the No Instrument Rating the Instrument the instrument Investment Committee and the Instrument reasons thereof CERTIFICATION Certified that the infonnation given herein are correct and complete to the best of my knowledge and belief and nothing has been concealed or suppressed. Date: __ _ Signature: __________ _ Full Name & Designation 14. For the existing Form 4, the following shall be substituted:- Form: 4 Company Name and Code: Statement Date: As at ............. .. Exposure Norms - Compliance Report to be submitted Yearly Type of Investment includes: (a) All investments in Equity/ Preference Shares of the Company (h) Debentures (Convertible / partly convertible/non-convertible) (c) Short/ Medium/ Long term loans (d) Any other permitted investments as per 1he Act/Regulation 24 THE GAZElTE OF INDIA : EXTRAORDINARY [PART lll-SEc. 4) Exposure Norms S. Nonns as per regulations Whether Exposure Remarks Nonns have been observed or not No II Limit Investee Company for In the case oflndian Insurance Companies: Exposure at any point of time not to exceed I 0% of the subscribed share capital, free reserves and debentures/ bonds of the investee 'company or the I 0% of the Insurer's total assets in case of non-life insurers and I 0% of the Controlled funds in case of Life insurers, whichever is less. In the case of existing insurers: Exposure at any point of time not to exceed 20% of the subscribed share capital, debentures/ bonds of the investee company or 5% of the Controlled funds of the life msurer or 10% of the general insurers total assets. Subject to exposure limits as per Insurance Act, 1938, investment in equity including preference shares, investment in equity convenible part of debentures should not exceed 50% of the above exposure nonns. A similar 50% of exposure norms limit would also apply to investment m immovable property. Subject to exposure limits mentioned in the table above, an Insurer shall not have investments of more than 5% in aggregate of its Controlled funds m the case of a life insurer or 5% in aggregate of its assets in the case of non- life insurer in the companies belonging to the promoters' groups. For the purposes of this regulation "group" will have the same meaning as m the MRTP Act, 1969. All investments m this category would specifically be referred to the Authority. Limit for Exposure at any pomt of time not to exceed I 0% of the the entire aggregate subscribed share capital, free reserves and group to debentures of all the group companies in which which the mvestments mcludmg investments under considerations, investee have been or proposed to be made by the insurer or the company 10% of the total assets in case of Non-Life Insurers and belongs I 0% of the Controlled Funds in case of Life Insurers whichever is less The percentage of I 0% of the total assets in the case on Non-Life insurers and 10% of the Controlled Fund in case of Life insurers can be raised to 15% in each case subject to specific approval of !RDA. The clause "whichever 1s less" will continue to apply. Subject to exposure limits as per Insurance Act, 1938, investment in equity including preference shares, investment in equity conven1ble pan of debentures should not exceed 50% of the above exposure norms. A similar 50% of exposure norms hmit would also apply to investment m immovable property Subject to exposure hm1ts mentioned in the table above, an Insurer shall not have mvestments of more than 5% in aggregate of its Controlled funds in the case of a life insurer or 5% in aggregate of its assets in the case of non- life insurer in the companies belonging to the promoters' groups For the purposes of this regulation "group" will have the same meaning as in the MRTP Act, 1969. All investments m this category would specifically be referred 10 the Authority. ['Wlill-~4] 'tmr lfiT ~ : 3fflNR'UI III Limit for Investment by the insurer in any industrial sector would the industry not exceed 10% of its total investment exposure to the sector to industrial sector as a whole. which the (Classification of Industrial sector to be done on the lines investee of classification in Industries done by CMIE (Centre for company Monitorine. lndian Economy) belongs Subject to exposure limits as per Insurance Act, 1938, investment in equity including preference shares, investment in equity convertible part of debentures should not exceed 50% of the above exposure norms. A similar 50% of exposure nonns limit would also apply to investment in immovable property. CERTIFICATION Certified that the information given herein are correct and complete to the best of my knowledge and belief and nothing has been concealed or suppressed. Date: __ _ S~gnature: _ _________ _ Full Name & Designation 25 N. RANGACHARY, Chairman (No. ADVT-3/4/E:<ty/161/2001) Printed by the Manager, Govt. of India Press, Ring Road, Mayapuri, New Delhi-I I 0064 and Published by the Controller of Publications, Delhi-I I 0054.