Insurers Exposure cap for Reverse Repo deals removed

The Insurance Regulatory and Development Authority (IRDA) have done away with the exposure limit on reverse repo transactions by insurers. In a circular to the chief executives of all insurance companies, IRDA has said that reverse repo transactions in government securities were treated on a par with collateralize borrowing and lending obligation (CBLO) transactions and the 10 per cent investment limit wasn't applicable to this category.