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Insurance Regulatory and Development Authority of India (Irdai) has said that Exchange Traded Funds with G-sec Underlying (GILT-ETF) will be part of ‘approved investments’ for insurers. The regulator said that these should be issued and managed by mutual funds registered under Sebi (Mutual Funds) Regulations.
The object of the GILT-ETFs would be to invest in a basket of Government Securities Actively Traded in the market or constituents of a publicly available index. Irdai said that the minimum investment by the insurer should not be less than creation unit size and shall not be reduced at any time below creation unit size and value of creation unit size, at the time of investment, should not be more than Rs 50 lakh.
The regulator said that the overall expense ratio should be less than 0.50 per cent of the daily net assets of the scheme. However, the regulator said that the insurers to comply with the provisions of the Insurance Act, 1938 should ensure that the GILT-ETFs invest only in domestic government securities.
The object of the GILT-ETFs would be to invest in a basket of Government Securities Actively Traded in the market or constituents of a publicly available index. Irdai said that the minimum investment by the insurer should not be less than creation unit size and shall not be reduced at any time below creation unit size and value of creation unit size, at the time of investment, should not be more than Rs 50 lakh.
The regulator said that the overall expense ratio should be less than 0.50 per cent of the daily net assets of the scheme. However, the regulator said that the insurers to comply with the provisions of the Insurance Act, 1938 should ensure that the GILT-ETFs invest only in domestic government securities.
