Regulator allows insurers to invest in infrastructure funds

No investment will be made in a Reit/Invit in which sponsor is under the promoter group of insurer

The Insurance Regulatory and Development Authority of India (Irda) has cleared investment by insurance companies in Real Estate Investment Trusts (Reits) and Infrastructure Investment Trusts (InvITs), thus making an important breakthrough for the sponsors.

Insurance companies are allowed to buy into commercial real estate, and letting them invest in Reits is expected to deepen the commercial property market, according to experts.

In a circular dated March 14, Irda said an insurer could invest not more than 3 per cent of its fund size or in not more than 5 per cent of the units issued by a single Reit/InvIT, whichever