IRDAI increases oversight of brokerage transactions; approvals take longer

The final beneficiaries of share transfers in the insurance broking industry are under closer scrutiny by the Insurance Regulatory and Development Authority of India (Irdai). The approval deadlines have been extended as a result of the enhanced vigilance; on average, the three to four month period has now stretched to more than nine months.

The Irdai's clearance is still pending for the March filing of Samara Capital's acquisition of Aditya Birla Insurance Brokers.

According to two sources, the regulator in this instance is looking for precise information on the general partners (GPs) that support Samara Capital. Aditya Birla Capital authorised in March to sell Edme Services, a division of Samara Capital Group and an affiliate of Samara Alternate Investment Fund, 50% of the share capital in its insurance brokerage company for 455 crore. The insurance broking industry offers reinsurance solutions to insurance companies as well as advice services to individuals and businesses.