Insurers may get more freedom to invest
Mumbai: Should the Government accept the recommendations made by the Insurance Regulatory Development Authority recently as part of amendments to the Insurance Act, Insurance companies may get access to more investment instruments.

C.S. Rao, chairman of the IRDA, said IRDA had suggested that insurance companies be allowed to invest in instruments that were until now `u-approved' and that specific percentages be prescribed for investment in instruments like equity derivatives, hedge funds and hybrid securities. Besides this insurance companies may also be allowed to invest in debt instruments are floated by international agencies such as IFC and ADB.

Currently, insurance companies are not allowed to invest in any of these instruments as they are bound by prudential norms under the Insurance Act. As per the recommendation, guidelines on investment beyond the mandatory 50 per cent in Government securities will be made as part of the regulation, which the IRDA will be able to prescribe and make changes whenever necessary. Besides changes in the investment regulation, the IRDA is seeking more regulatory powers.
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SBT launches depository services
Thiruvananthapuram: State Bank of Travancore has launched depository services offering facilities for of dematerialisation, re-materialisation and transfer of securities. The depository will undertake delivery instructions for market and off-market transactions, pledge and hypothecation of securities and receipts of corporate actions, according to a statement from the bank.
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