Tuesday, September 26, 2017

Doubts on HDFC Life, Max Life merger unresolved

The proposed merger of HDFC Life and Max Life, which will create India’s largest life insurer, has not received any opinion from the country’s attorney general.

India’s insurance regulator had sought the opinion of Attorney General Mukul Rohatgi after doubts arose whether the transaction could be approved since there was no provision in the law for such deal.

In an interview with The Economic Times, the attorney general said he has refused to give his opinion on the matter and has returned the file to the insurance regulator.

It was in August last year when HDFC Life and Max Life proposed a four-leg merger.

The first leg would be for Max Financial Services, a holding company, to be merged with Max Life.

That was to be followed by a demerger of the life insurance business, which would subsequently be merged with HDFC Life.

Insurance Regulatory & Development Authority had sought the opinion of Rohatgi on whether to permit the merger.

 

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