Irdai directs Care Health to buy back shares allotted to Rashmi Saluja
The Insurance Regulatory and Development Authority of India (Irdai) has imposed a fine of Rs 1 crore on Care Health Insurance for violating norms and has also ordered the company to buy back 7.66 million shares allotted to Rashmi Saluja at Rs 45.32 per share within 30 days.
Earlier, the regulator had prohibited the health insurer from granting Employee Stock Ownership Plans (ESOPs) to Saluja, who was a non-executive director on the company’s board.
In addition, Irdai Care Health has directed to cancel and revoke the unexercised stock options to Saluja and also ensure that no further grant and/or assignment of options is made to her. The company must comply with the order within 15 days.
The regulator added that any decision of the insurer’s board of directors, including remuneration, payment, perks or any other benefit, financial or otherwise, to any board member, managing director and CEO, should be implemented only after prior approval of Irdai.
First print: Jul 23, 2024 | 9:02 PM IST