New Delhi: In a boost for the lenders of Reliance Capital, the Insurance Regulatory and Development Authority (IRDA) has cancelled the pledge enforcement of Reliance General Insurance shares by Credit Suisse and Nippon India Mutual Fund. According to a statement by Reliance Capital, IRDA has in a direction dated December 27, 2019, has held that the pledge/transfer of shares of Reliance General Insurance Company Ltd (RGICL), a 100 per cent subsidiary of Reliance Capital (RCAP), was in violation of the applicable provisions of law.
Pursuant to the regulator IRDAI’s direction, the 100 per cent shareholding of RGICL stands restored to RCAP. IRDAI directed trustee not to give effect to any encumbrance/transfer or any change in the Shareholding of the RGICL. In November 2019, the Trustee had transferred RCAP’s 100 per cent shareholding in RGIC by the invoking pledge, which was being contested by the company, the statement said. (IANS)