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Every insurer submits investment returns to the Authority within specified time limits and intervals. Insurers deal in financial derivatives only under the guidelines issued by the Authority. Life and non-life insurers do not hold investments of more than five percent of controlled funds or assets in promoter group companies. Collateralised Borrowing and Lending Obligation created by the Clearing Corporation of India Limited is an approved money market instrument under Schedule I and Schedule II.
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[भाग III—खण्ड 4] भारत का राजपत्र : असाधारण 17
Hyderabad, the 1st January, 2004
F.No.IRDA/Reg./1 /2004 – In exercise of the powers conferred by Sections 27A, 27B, 27D and 114A of the Insurance Act, 1938 (4 of 1938), the Authority, in consultation with the Insurance Advisory Committee, hereby makes the following regulations to amend the Insurance Regulatory and Development Authority (Investment) Regulations, 2000, namely:-
Short Title and commencement.-(1) These regulations may be called the Insurance Regulatory and Development Authority (Investment) (Amendment) Regulations, 2004. (2) They shall come into force on the date of their publication in the Official Gazette.
In regulation 2 of the Insurance Regulatory and Development Authority (Investment) Regulations, 2000, the following new clauses shall be added, after clause (c):
"(ca) 'Group' means:
- (i) two or more individuals, associations of individuals, firms, trusts, trustees or bodies corporate (excluding Financial Institutions) or any combination thereof, which exercises, or is established to be in a position to exercise, control, directly or indirectly, over any body corporate, firm or trust, or
- (ii) Associated persons,
as may be stipulated by the Authority, from time to time, by issuance of guidelines in this behalf.
(cb) 'Financial Derivatives' means a derivative as defined under clause (aa) of section 2 of the Securities Contracts (Regulation) Act, 1956, and includes a contract which derives its value from interest rates of underlying debt securities and such other derivative contracts as may be stipulated by the Authority, from time to time."
"2. 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 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" shall have the same meaning as defined under these Regulations. All investments in this category shall specifically be referred to the Authority."
43 GL/04-3
18 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
"6. Returns to be submitted by an Insurer.-Every insurer shall submit to the Authority the following returns within such time, at such intervals and verified / certified in such manner as indicated there against.
| No. | Form No | Description | Periodicity of returns | Time limit for submission | Verified / Certified by |
|---|---|---|---|---|---|
| 1. | Form 1 | Statement of Investments and Income on Investments | Yearly | Within 30 days from the date of Boards approval of Audited Accounts | Principal Officer / Chief of (Investments) |
| 2. | Form 2 | Statement of Down Graded Investments | Quarterly | Within 21 days of the end of each quarter | Principal Officer / Chief of (Investments) |
| 3. | Form 3A | Statement of Investment of Controlled Fund (Life) – Compliance Report | Quarterly | Within 21 days of the end of each quarter | Principal Officer / Chief of (Investments) |
| 4. | Form 3B | Statement of Investment of Total Assets (General) – Compliance Report | Quarterly | Within 21 days of the end of each quarter | Principal Officer / Chief of (Investments) |
| 5. | Form 3C | Exception Report on Instruments not complying with "AA" or "AAA" grade – Compliance Report | Quarterly | Within 21 days of the end of each quarter | Principal Officer / Chief of (Investments) |
| 6. | Form 4 | Exposure /Prudential Investment Norms – Compliance Certificate | Yearly | Within 30 days from the date of Boards approval of Audited Accounts | Principal Officer / Chief of (Investments) |
| 7. | Form 4A | Statement of Investment Subject to Exposure Norms | Yearly | Within 30 days from the date of Boards approval of Audited Accounts | Principal Officer / Chief of (Investments) |
| 8. | Form 5 | Statement of Investment Reconciliation | Quarterly | Within 21 days of the end of each quarter | Principal Officer / Chief of (Investments) |
| 9. | Form 5A | Statement of Mutual Fund Investments | Quarterly | Within 21 days of the end of each quarter | Principal Officer / Chief of (Investments) |
| 10. | Form 6 | Certificate under Section 28(2A), 28(2B) and 28B(3) of the Insurance Act, 1938 | Quarterly | Within 21 days of the end of each quarter | Principal Officer / Chief of (Investments) |
| 11. | Form 7 | Confirmation of Investment Portfolio Details | Quarterly | Within 21 days of the end of each quarter | Principal Officer / Chief of (Investments)" |
[भाग III—खण्ड 4] भारत का राजपत्र : असाधारण 19
"11. Dealing in Financial Derivatives.- (1) Every Insurer carrying on the business of life insurance or general insurance may deal in financial derivatives only to the extent permitted and in accordance with the guidelines issued by the Authority in this regard from time to time.
(2) Any margin or unamortized premium paid by any insurer in connection with the financial derivatives to the extent they are reflected as asset position in the Balance Sheet of the Insurer in accordance with the guidelines issued by the Authority, shall be treated as "Approved Investment" under Schedule I and Schedule II to these Regulations, only to the extent the derivatives position constitutes a hedge for the underlying investment or portfolio which itself is treated as an approved investment under these Regulations. All other margin or unamortized premium paid, to the extent reflected in the Balance Sheet of the Insurer in accordance with the guidelines issued by the Authority in this regard from time to time, shall be treated as "Other than Approved Investments".
"(iia) Collateralised Borrowing and Lending Obligation (CBLO) created by the Clearing Corporation of India Limited and recognised by the Reserve Bank of India as a money market instrument / investment."
"(iia) Collateralised Borrowing and Lending Obligation (CBLO) created by the Clearing Corporation of India Limited and recognised by the Reserve Bank of India as a money market Instrument / investment."
20 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
FORM - 1
COMPANY NAME & CODE:
STATEMENT AS ON :
NAME OF THE FUND :
STATEMENT OF INVESTMENT AND INCOME ON INVESTMENT
PERIODICITY OF SUBMISSION : YEARLY
Rs. In Lakhs
| NO. | CATEGORY OF INVESTMENT | CAT CODE | CURRENT YEAR | PREVIOUS YEAR | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| INVESTMENT (Rs.) | INCOME ON INVESTMENT (Rs.) | GROSS YIELD (%)1 | NET YIELD (%)2 | INVESTMENT (Rs.) | INCOME ON INVESTMENT (Rs.) | GROSS YIELD (%)1 | NET YIELD (%)2 | |||
| TOTAL | ||||||||||
