IRDAI in-principle approval to wholly owned subsidiary for Direct Insurance Broker registration

IRDAI grants in-principle approval to Vedavaag Financial Insurance Broking Services Pvt Ltd, a wholly owned subsidiary, to act as a Direct Insurance Broker (Life & General).

Wed 7 Oct 2026

IRDAI Ref No.

IRDAI/INT/DB 1344/2026

Capital Requirement

INR 75 lakhs

Fixed Deposit Requirement

Rs.10 lakhs, minimum term of 3 years

What the company informed the exchange

Vedavaag Systems Ltd has informed BSE that its wholly owned subsidiary, Vedavaag Financial Insurance Broking Services Private Limited (the WOS), has got in-principle approval from IRDAI (Ref No. IRDAI/INT/DB 1344/2026) to act as a Direct Insurance Broker (Life & General). The company had earlier communicated on this matter, and its board meeting outcome intimation of September 24, 2026 is the reference for this update.

What in-principle approval means here

In the words of the approval letter itself, the grant of approval is a notice to enable the subsidiary to comply with the requirements of the IRDAI (Insurance Brokers) Regulations, 2018, pending issue of the Certificate of Registration. In simple terms, the application has been cleared to the next stage and the Certificate of Registration is yet to be issued.

Conditions the subsidiary has to meet

• Surrender the licence, if any, held by the Directors/Shareholders/PO/KMPs for carrying out insurance or related activities, and file a confirmation with the Authority.
• Raise capital to INR 75 lakhs and submit a CA certificate.
• Create a single fixed deposit with a scheduled bank for a minimum term of 3 years for a sum equivalent to Rs.10 lakhs, and submit a bank letter stating that the Authority has a lien on the FD, that no amount shall be released without prior permission/approval, and that no loan shall be released against it.
• Submit an auditor certificate on the overall shareholding structure (names of shareholders, dates of allotment, date-wise and total number of shares held, percentage in total shareholding, share certificate and folio numbers, authorised and paid up capital), a certificate on sources of funds and their deployment, a bank balance certificate, the latest net-worth certificate, and undertakings on compliance with the Regulations and the Insurance Act, 1938.
• Undertaking that the partners/promoters/shareholders will not dispose-off their holdings in the applicant entity during the registration period of 3 years.
• Confirm that the IT software will generate the reports of regulatory requirements and that the entity utilises data storage in India.
• Pay the requisite fees of Rs. 10,000/- plus GST@18% by NEFT/RTGS.
• Comply with the above documents/information within 15 days from receipt of the letter.

What this means for someone holding the stock

This approval relates to an insurance broking activity to be carried on by a wholly owned subsidiary, so any broking revenue would arise in that subsidiary. The letter also sets out money commitments — a capital raise to INR 75 lakhs and a locked fixed deposit of Rs.10 lakhs — along with the other steps listed above. The company has said it will make further disclosures as and when there are material developments, so the issue of the Certificate of Registration is the next milestone to watch.

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