Irdai Cracks Down on CHIL: Buyback and Fine Imposed

Insurance sector regulator Irdai has directed Care Health Insurance Ltd (CHIL) to buy back ESOPs granted to its non-executive Chairperson Rashmi Saluja, and imposed a penalty of Rs 1 crore for violating remuneration norms. The directive calls for compliance within specified timeframes.

Insurance sector regulator Irdai has mandated Care Health Insurance Ltd (CHIL) to repurchase employee stock ownership plans (ESOPs) awarded to its non-executive Chairperson, Rashmi Saluja. Additionally, a punitive fine of Rs 1 crore has been imposed for breaching regulatory guidelines.

According to Irdai's 2016 Remuneration Guidelines, insurers must ensure that non-executive directors receive no compensation beyond profit-related commissions and sitting fees. CHIL, a subsidiary of Religare Enterprises where Saluja holds an executive role, failed to meet these requirements.

Irdai's directive stipulates the buyback of 75,69,685 shares allocated to Saluja at Rs 45.32 per share within 30 days. Any unvested or unexercised stock options are to be canceled. Future stock allocations to Saluja are also prohibited, with compliance required within 15 days. Additionally, all Board decisions related to remuneration must now receive prior approval from Irdai.

(With inputs from agencies.)