The ratings downgrade of select instruments of two Reliance CapitalNSE -8.41 % group companies last week is now threatening to spill over into the insurance sector with some insurers seeking regulatory forbearance on complying with investment norms.
People close to the development said some insurance companies, facing a breach in investment norms under unit-linked plans and group and annuity funds, have asked Insurance Regulatory and Development Authority of India (Irdai) for extra time ..