India regulator orders takeover of Sahara India Life Insurance unit by SBI Life
Adds responses from SBI Life in paragraph 3 and Sahara Life in paragraph 4
By Nikunj Ohri
NEW DELHI, June 2 (Reuters) -India's insurance regulator on Friday ordered the takeover of a unit of Sahara India Life Insurance by SBI Life Insurance SBIL.NS, following the company's "continuous deterioration of financial position".
The Insurance Regulatory and Development Authority of India (IRDAI) on Friday said the life insurance business of Sahara India Life will be transferred to SBI Life with immediate effect.
SBI Life clarified that there will be a transfer of Sahara India Life's policyholder assets and liabilities, but no merger between the two entities.
A statement issued by Sahara India Life said the matter is currently under consideration with the Securities Appellate Tribunal and the next hearing is scheduled for June 6.
Sahara India Life has been under the regulator's scrutiny since 2017 for allegedly acting against policyholders' interests. IRDAI had appointed an administrator to run the insurer the same year.
The administrator had found that Sahara India Life's promoters were no longer fit to run the company and had allegedlydiverted funds.
"If the trend is allowed to continue, the situation will worsen and lead to erosion of capital and Sahara India Life Insurance Co may not be able to discharge its liabilities towards policyholders," IRDAI said on Friday.
As per the regulator's order, SBI Life will take over the liabilities of about 200,000 policies and assets of Sahara India Life.
SBI Life will have to integrate the systems for its life insurance business with that of Sahara India Life within one year, the IRDAI order said.
The insurance regulator has formed an internal committee to oversee the acquisition in a "time bound" and "smooth" manner.
"IRDAI will continue to monitor the situation and also issue necessary directions as required in the interest of the policyholders of Sahara Life," the regulator's statement said.
Reporting by Nikunj Ohri in New Delhi; Additional Reporting by Rishabh Jaiswal in Bengaluru; Editing by Pooja Desai
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。