NCLAT rejects IRDAI pleas towards Shriram Group insurance coverage arm mergers, citing no statutory bar beneath Insurance coverage Act. File
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The Nationwide Firm Legislation Appellate Tribunal (NCLAT) rejected pleas by the Insurance coverage Regulatory and Improvement Authority of India (IRDAI) towards the nod given for merger proposals of the insurance coverage arm of Shriram Group.

Earlier, varied Benches of Nationwide Firm Legislation Tribunal (NCLT), authorized the proposals to merge Shriram GI Holdings Non-public Restricted (SGIH) with Shriram Normal Insurance coverage Firm Restricted (SGIC) and Shriram LI Holdings Non-public Restricted (SLIH) with Shriram Life Insurance coverage Firm Restricted (SLIC).

The approval was given as per provisions of Part 230 to 232 of the Corporations Act, 2013.

SGIH undertakes the enterprise of investments, facilitate strategic, non-public fairness and third-party buyers, and to hold on consultancy enterprise, together with particularly in relation to the final insurance coverage merchandise sector, whereas SLIH important goal is to undertake funding enterprise, as per an announcement issued final 12 months saying Competitors Fee of India’s nod for the proposals.

IRDAI petitioned the NCLAT towards the NCLT order, arguing that it’s obligatory to get approvals beneath part 35 (1) of the Insurance coverage Act, when a agency within the insurance coverage enterprise merges with one that’s exterior the sector.

In its order dated March 10, the appellate tribunal held that part 35 of the Insurance coverage Act doesn’t place a statutory bar towards such mergers when undertaken beneath Sections 230 to 232 of the Corporations Act, 2013.