Tuesday, 6 December 2011
LIC to float first infra debt fund(IDF)
Life Insurance Corporation of India (LIC) along with Srei Infrastructure Finance will float the country's first infrastructure debt fund (IDF), under a government scheme aimed at boosting investments in sectors like roads, seaports, airports and power.
The IDF scheme was announced in Budget this year. In June, Sebi came out with norms for these funds to be set up through the mutual funds route. Recently, the RBI laid down the guidelines for infra debt funds as NBFCs.
A senior official told FE that the government was keen to set up the first IDF by January. LIC is in talks with Sebi to get the approval for a debt fund, which will be a mutual fund, the official said.
As per norms of the IRDA (Insurance Regulatory and Development Authority), insurers are allowed to invest only in AAA and AA rated debt papers in the infrastructure sector.
Hemant Kanoria, CMD, Srei confirmed the development. Kanoria said, “Recently, Srei has got an in-principal approval from Sebi to set up a mutual fund. The market regulator has approved the trustees.
The IDF scheme was announced in Budget this year. In June, Sebi came out with norms for these funds to be set up through the mutual funds route. Recently, the RBI laid down the guidelines for infra debt funds as NBFCs.
A senior official told FE that the government was keen to set up the first IDF by January. LIC is in talks with Sebi to get the approval for a debt fund, which will be a mutual fund, the official said.
As per norms of the IRDA (Insurance Regulatory and Development Authority), insurers are allowed to invest only in AAA and AA rated debt papers in the infrastructure sector.
Hemant Kanoria, CMD, Srei confirmed the development. Kanoria said, “Recently, Srei has got an in-principal approval from Sebi to set up a mutual fund. The market regulator has approved the trustees.
