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Policy▼ Bearish for PB Fintech
Why PB Fintech, HDFC Life, ICICI Pru, Max Financial stocks crashed after IRDAI reform
The brief
- Brokerage said PB Fintech would be most affected by proposed take-rate caps
- Proposed caps involve cuts in health and motor insurance and delays
- Proposed commission caps may pressure PB Fintech and listed insurers’ distribution-linked earnings
| Stock | Traded | That day | vs Nifty | Volume | Since |
|---|---|---|---|---|---|
| HDFCLIFE | Fri, 25 Sept | +0.8% | +0.4% | 1.0× | +0.8% · Nifty +0.3% |
| ICICIPRULI | Fri, 25 Sept | −0.3% | −0.7% | 0.7× | −0.3% · Nifty +0.3% |
| MFSL | Fri, 25 Sept | +3.4% | +3.1% | 3.4× | +3.4% · Nifty +0.3% |
✗ Classifier read this as negative; MFSL rose 3.1% against the Nifty on the day it traded.
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IRDAI's proposed insurance distribution reforms
IRDAI proposed phased cuts to insurers’ expense limits, commission caps and a ban on compulsory insurance bundling with loans. The proposals prompted debate over premiums, mis-selling and distributor payouts, while reports highlighted possible earnings risks for PB Fintech.
Thursday, 24 September
- Why PB Fintech, HDFC Life, ICICI Pru, Max Financial stocks crashed after IRDAI reform