IRDA may allow insurance companies to invest in InvIT, REIT debt

In order to make available more funds for infrastructure investment, IRDA is planning to allow insurance companies to invest in debt securities issued by any pooled investment vehicles, including infrastructure and real estate investment trusts. This move will help Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) raise more money.

Shivam Bajaj, Director, Bajaj Consultants, said, “This move could be a game-changer as the InvIT/REIT industry can tap a huge pool of insurance money.” He added, “Borrowers too will be more responsible in servicing their debt obligations failing which they would be dragged to the NCLT with the fear of losing assets.”