Insurance regulator Irdai on Saturday posed reservations on the present form of amalgamation of Max India and HDFC life into a single entity. The two companies, however, said they will clarify on the matter to the regulator. The scheme of amalgamation proposes merging of insurance business in an agreement between Max Financial Services ltd (MFSl), its subsidiary Max life Insurance Company ltd (MlIC), HDFC Standard life Insurance Company ltd (HDFC life) and Max India. HDFC life and MlIC had filed an application seeking in-principle approval of Irdai for the proposed amalgamation scheme on September 21, 2016.
“Irdai has expressed reservations to accept the scheme of amalgamation in its current form. MlIC and HDFC life believe that the scheme of arrangement as submitted to the Irdai is in compliance with all applicable laws and propose to represent and clarify the matter to Irdai,” they said in separate filings to the exchanges.