The Insurance Regulatory Development Authority of India isconsidering allowing insurers to buy hybrid Additional Tier 1 bonds issued bybanks, Reuters reported May 5, citing V.R. Iyer, a senior official at theregulator.
The regulator will finalize a decision on the matter in onemonth, Iyer said.
The official added that the regulator will maintain existingrestrictions on insurers buying bonds of companies rated below AA. Someinvestors expected the regulator to ease existing rules that restrict thepurchase of such bonds, given India's efforts to bolster investments in theinfrastructure sector.