Mumbai: The Insurance Regulatory Development Authority of India (IRDA) was contemplating permitting insurers to purchase hybrid further Tier 1 bonds issued by banks, stated V.R. Iyer, a senior official on the nation’s insurance coverage regulator.

While talking to reporters on the sidelines of the Thomson Reuters Risk Summit, Iyer said, the regulator would take a final decision in a month.

The regulator had no plan to ease an existing rule that restricts insurance companies from buying bonds of companies rated below "AA", Iyer said Separately.

Some buyers had expected the principles to be relaxed as India strives to get extra investments into the infrastructure sector.