Reliance Capital on Sunday said the Insurance Regulatory and Development Authority of India has cancelled pledge enforcement of Reliance General Insurance Company Ltd's (RGICL) shares by Credit Suisse and Nippon India MF.
Irdai has directed IDBI Trusteeship Services not to give effect to any encumbrance or transfer or any change in the shareholding of RGICL, according to a BSE filing by Reliance Capital (RCAP).
The statement added: "Pursuant to the Irdai direction, 100 percent shareholding in RGICL stands restored to RCAP.
"IRDAI directed trustee not to give effect to any encumbrance / transfer or any change in the Shareholding of the RGICL.
"In November 2019, the trustee had transferred RCAP’s 100 percent shareholding in RGIC by invoking pledge, which was being contested by the Company.
"IRDAI ruling has protected the interest of all lenders and debenture holders of RCAP. This will now help RCAP to monetise its stake in RGIC and to reduce its debt."
Reliance Capital, in its statement, added that the company will continueits efforts to monetize its shareholding in RGICL.
"The company will continue its efforts to monetize its shareholding in RGICL as part of its overall plans for debt reduction."
First Published: IST