in Debt Securities of InvITs and REITs
Investments-Master Circular permits
insurers to invest in Units of listed Infrastructure Investment Trusts (InvITs)
and Real Estate Investment Trusts (REITs). Consequent to Finance Act, 2021
permitting Trusts to issue Debt Securities, the following conditions shall
apply to Insurers investing in “Debt Securities” issued by
InvITs / REITs:
The Debt Instruments of InvIT / REIT shall
be rated and not less than “AA” as a part of Approved
Debt Instruments of InvITs / REITs rated and
or downgraded below “AA” shall form part of Other
No insurer shall invest more than 10% of the
Outstanding Debt instruments (including the current issue) in a singleInvIT/REITs
The cumulative Investments in Units and Debt
Instruments of InvITs and REITs shall not exceed 3% of total fund size of the
Insurer at any point of time.
No investment shall be made in Debt
instruments of an InvIT/REIT where the Sponsor is under the Promoter Group of
Group shall have the meaning as defined
under Regulation 2(g) of IRDAI (Investment) Regulations, 2016
Investment in Debt Instruments of InvIT will
form part “Infrastructure Investments”.
Investment in Debt Instruments of REIT will
form part of industry group “Real Estate Activities”
under NIC Industry Classification.
The Investment in Debt Securities of
InvITs/REITs shall be valued either as per FIMMDA or at applicable market yield
rates published by any Rating Agency registered with SEBI.
The codes applicable under Category of
Investment (COI) for Debt Instruments of InvITs
and REITs are:
Debt Instruments of InvITs - IDIT
Debt Instruments of REITs - EDRT
Debt Instruments of InvITs - IOIT
Debt Instruments of REITs - ODRT
The Concurrent Auditor in his Quarterly
Report to the Audit Committee / Board of the Insurer shall specifically confirm
compliance to ALL the above norms.
(S. N. Jayasimhan)