In a significant ruling, the Insurance Regulatory and Development Authority of India (IRDAI) has imposed a ₹1 crore penalty on Care Health Insurance for non-compliance with regulations. This decision marks a stern response from the regulatory body, emphasizing the importance of adherence to established guidelines.

Rashim Saluja has been directed to buy back the stock options granted to him. Furthermore, IRDAI has removed Saluja from his position as Non-Executive Chairman of Religare Enterprises, highlighting the seriousness of the violations.

A notable aspect of the ruling includes the requirement for Saluja to buy back 75.69 lakh shares that were initially granted to him. The shares must be repurchased at the same price they were issued. Care Health Insurance has been given a 30-day deadline to complete this process, ensuring a swift resolution.

Additionally, IRDAI has ordered the cancellation of any unexercised stock options. In a further move to tighten controls, Rashim Saluja has been barred from receiving any new stock options. This measure is part of a broader effort to reinforce governance standards within the company.

Future benefits for board members of Care Health Insurance will now require prior approval from IRDAI. This decision underscores the authority's commitment to overseeing corporate governance practices.

Lastly, the IRDAI has mandated that any applications for Employee Stock Option Plans (ESOPs) must receive their prior approval. This ruling follows Care Health Insurance's recent request to issue 2.27 crore stock options, which was under scrutiny.

This comprehensive set of directives from IRDAI aims to ensure transparency and accountability within Care Health Insurance, setting a precedent for strict regulatory compliance in the industry.