Go Digit General Insurance has received a show cause notice and advisories from the Insurance Regulatory and Development Authority of India (IRDAI) as it readies for its IPO. The notice relates to the alleged non-disclosure of changes in the conversion ratio of compulsory convertible preference shares (CCPS).
The holding company, Go Digit Info Works Services (GDISPL), stands accused of violating the Insurance Act by failing to disclose these alterations to FAL Corporation, owned by Canada-based Fairfax Financial Holdings. Go Digit has responded to the notice and the outcome is awaited.
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