Question
Which of the following points are ‘correct’ with
respect to the amendment on Bank Bonds, Infrastructure Investment Trusts (InvITs)/Real Estate Investment Trust (REITs)? I) The aggregate value of AT1 (Additional Tier) bonds held in a particular bank, at any point of time, should not exceed 10% of the total outstanding AT1 bonds of that particular bank. II) The public holding in the InvITs/REITs should not be less than 30% of total outstanding units of the InvIT/REIT at the time of investment. III) No insurer will invest more than 20% of the outstanding debt instruments in a single InvIT/REIT.Solution
Explanation: The Insurance Regulatory Development Authority of India (IRDAI) has amended its master circular on investments, and allowed insurers to buy more perpetual bonds issued by banks and permitted them to participate in the public listing of high-yielding InvITs (Infrastructure Investment Trusts). i. The aggregate value of AT1 (additional tier one) bonds held in a particular bank, at any point of time, should not exceed 10% of the total outstanding AT1 bonds of that particular bank. ii. The public holding in the InvITs/REITs should not be less than 30% of total outstanding units of the InvIT/REIT (Real Estate Investment Trust) at the time of investment. iii. No insurer will invest more than 20% of the outstanding debt instruments in a single InvIT/REIT. iv. Expenses will be capped at 30% of gross premium in general and health insurance. In life insurance, it will vary between 0.01% and 80%.
130 114 106 102 100 ?
3720 3842 ? 4092 4220 4350
...0Â Â Â Â Â Â 2 Â Â Â Â Â Â Â 6Â Â Â Â Â Â 12 Â Â Â Â Â Â 20Â Â Â Â Â Â Â ?
...17Â Â Â Â Â ? Â Â Â Â Â 2142 Â Â Â Â Â Â 12852 Â Â Â Â Â Â 64260Â Â Â Â Â Â 257040
...133    183    220    ?     263     273
...720    ?     240     180      144     120
...12 7 10 25 107 ?
...125 36 343 ? 729 100
...8   24    12    ?   18     54
10 59 ? 1169 3503 7001
...
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