Asserting that insurance regulator IRDAI’s January 2018 Brokers Regulations discriminate against domestic investors, the Swadeshi Jagaran Manch (SJM) has urged Prime Minister Narendra Modi to intervene in the matter and set right the situation.
IRDAI, in its Brokers Regulations, clearly favoured foreign investors, and these are tilted in favour of multinational brokerage houses with much deeper pockets, SJM National Co-Convenor, Ashwani Mahajan, said in a letter to the Prime Minister.
“We are seeking your (Prime Minister) direct intervention in this, and seeking a level-playing field for domestic and indigenous players,” the letter said.
The main point of anguish is that a domestic investor cannot hold more than 25 per cent stake in an insurance broker, while a foreign investor can have up to 49 per cent.