IRDAI is encouraging insurance companies, especially those operating for over a decade, to go public through moral suasion during meetings with senior executives, rather than setting formal timelines. The regulator believes listing would improve corporate governance and unlock greater value for stakeholders.
While newer, private equity-backed insurers are more inclined to list, older players like Bajaj Allianz have yet to do so. IRDAI continues to push for more insurers to follow the example of publicly traded companies like LIC, SBI Life, and ICICI Prudential Life.
The Indian government has asked private equity and venture capital industries to explain how other countries tax fund managers, particularly concerning GST on carried interest. Advanced markets like the US and UK don’t tax carry as a service but as capital gains. The Supreme Court’s recent decision upholding a Karnataka HC ruling provides some relief by stating that funds don’t make profits or provide services, but the GST on carry remains unresolved. The industry hopes for tax clarity, fearing that treating carry as a performance fee could hurt growth, with global practices favoring capital gains treatment.
Government agencies, including FIU, IB, and CERT-In, have been investigating the $235 million hack of WazirX on July 18, focusing on how crypto tokens were illegally transferred. WazirX is cooperating and providing logs, transaction trails, and blockchain data. No physical assets were confiscated, and an inside job is not suspected.
The exchange, currently under a four-month moratorium in Singapore, is setting up a committee of creditors and exploring recovery options with three potential white knights from the crypto industry to return 52-55% of assets to clients.
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