The Insurance Regulatory and Development Authority of India (IRDA) has denied permission to the proposed merger of Max Life Insurance Co. Ltd and HDFC Standard Life Insurance Co. Ltd (HDFC Life), saying the structure of the deal violates Section 35 of the Insurance Act, 1938, which bars the merger of an insurance company with a non-insurance firm.
In separate statements on Thursday, both Max and HDFC Life said IRDA has reaffirmed its earlier position on the deal in its current structure, following which both companies are exploring other options.
