Piramal Enterprises is not fit to acquire Reliance Nippon Life Insurance, which is on the block as part of the resolution process of debt-ridden Reliance Capital, due to Irdai restriction.
Piramal Enterprises is one of the 54 prospective resolution applicants (PRAs) for Reliance Capital and its subsidiaries. As per the Insurance Regulatory and Development Authority of India (Irdai) guidelines, a promoter cannot have a stake in more than one insurance company in the same segment.
As per the provisions, an investor individually cannot hold more than 10 per cent and jointly could not hold more than 25 per cent paid-up equity share capital of the insurance company.
Piramal Enterprises is one of India’s large diversified companies, with a presence in Pharmaceuticals, Healthcare Information Management and Financial Services.
