The Insurance Regulatory and Development Authority of India (IRDAI), on February 12, 2026, notified regarding the Clarifications on provisions with respect to investment in Alternative Investment Funds (AIFs).
The following has been stated namely: -
• IRDAI allows insurers to invest in Alternative Investment Funds. The existing provisions inter alia stipulate the following:
• Insurer shall invest only into Fund of Funds (FoF) which comply requirement of Section 27E of the Insurance Act, 1938;
• Insurer shall ensure compliance with Section 27E by a clause in the Fund Offer Documents executed by FoF to restrain such FoF from investing in AIFs which invest in overseas companies/funds;
• Insurers should ensure that AIFs do not invest in securities of companies incorporated outside India to comply with the provisions of Section 27E of the Insurance Act,1938;
• No Insurer shall invest in an AIF, which in turn has exposure to a FoF, in which the Insurer has taken an exposure.
[Notification No. IRDAI/F&I/CIR/INV/28/2/2026]
