Star Health & Allied Insurance Company Stock Price: The share of insurance sector company Star Health & Allied Insurance Company Ltd (NSE: STARHEALTH) fell by 5 percent on December 9.
The main reason for this was the show cause notice issued by the Insurance Regulatory and Development Authority (IRDAI). On Friday, December 6, the company informed the stock markets about receiving this notice on December 4.
It was said that the notice is based on the comments submitted by the company on the general inspection and observations made by IRDAI during the period from 31 January 2022 to 11 February 2022.
The alleged violations by the company mentioned in the show cause notice relate to various regulations and guidelines of IRDAI.
Star Health’s stock fell by 5 percent to a low of Rs 463.95 on BSE on December 9. The stock has fallen by 25.48 percent in 3 months. It has come down by 15.14 percent in a year. Promoters held a 57.69 percent stake in Star Health as of the end of September 2024.
Star Health Has To Respond Within 21 Days
The company said in an exchange filing that it has to respond to the show cause notice along with supporting documents within 21 days.
The company is currently in the process of preparing an appropriate response to the allegations of violations. Star Health & Allied Insurance Company Ltd was conducting an internal assessment of the impact due to the show cause notice.
In another filing on December 7, the company said that IRDAI keeps inspecting insurance companies from time to time and then issues observations.
The observations of IRDAI mentioned in the show cause notice are about the business and operational aspects of Star Health.
Quick Fact
| Company name | Star Health |
|---|---|
| Recent stock drop | Fell 5% on December 9 |
| Reason for stock drop | Show cause notice from IRDAI |
| Notice received | December 4, 2024 |
| IRDAI inspection period | January 31 to February 11, 2022 |
| Alleged violations | Regulations and guidelines of IRDAI |
| Stock price | ₹468 (-4.21%) |
| Promoter stake (Sept 2024) | 57.69% |
| 3-month stock change | Down 25.48% |
| 1-year stock change | Down 15.14% |
| Response timeline | Within 21 days |
| Ongoing company actions | Preparing response and internal assessment |
| Purpose of IRDAI inspections | Business and operational observations of insurers |
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