Religare Enterprises Limited has announced that its material subsidiary, Care Health Insurance Limited (CHIL), received a Show Cause Notice (SCN) from the Insurance Regulatory and Development Authority of India (IRDAI) dated March 02, 2026. The SCN follows a thematic onsite inspection conducted in February 2025. CHIL is currently addressing the allegations and preparing a formal reply regarding potential violations across several Master Circulars and Regulations.
Regulatory Action Against Subsidiary
Religare Enterprises Limited (REL) officially informed the stock exchanges on March 03, 2026, regarding a significant regulatory development impacting its material subsidiary, Care Health Insurance Limited (CHIL).
CHIL was issued a formal Show Cause Notice (SCN) by the Insurance Regulatory and Development Authority of India (IRDAI) on March 02, 2026. This action stems from a thematic onsite inspection conducted on CHIL between February 10, 2025, and February 14, 2025, where IRDAI had previously raised observations to which CHIL had already responded.
Alleged Violations and Impact Assessment
The SCN alleges potential violations by CHIL concerning several key regulatory frameworks. These include the Master Circular on Operations & Allied Matters of Insurer, 2024; the Master Circular on Protection of Policyholders Interest, 2024; and the IRDAI (Insurance-Products) Regulations, 2024, among others.
Crucially, the company has stated that there is no material impact on the financials, operations, or other activities of the listed entity (REL) due to this SCN at present. Any potential penalty, if adjudicated, will be borne by CHIL. The financials of CHIL are consolidated within REL’s overall figures.
Management Response
CHIL is currently engaged in taking necessary remedial/appropriate steps as advised and is in the process of preparing its comprehensive reply to the Show Cause Notice.
Source: BSE
