Insurance Regulatory Development Authority (IRDA) grants the sale of the Reliance Life Insurance stake, held by the Reliance Capital.

The Company had appealed for a stake deal of 26%, with Japan's Nippon Life. The last and final grant on the agreement is to be received from the Reserve Bank of India. According to the rules of the agreement, Nippon Life Insurance will pay out an amount of Rs. 3,062 to Reliance Capital for the 26% of the shares of Reliance Life Insurance.

As per the statement from Indian financial services, "We have received in-principle approvals from Insurance Regulatory Development Authority (IRDA) for proposed stake sale in Reliance Life Insurance". The deal is expected to increase the value of the Reliance Life Insurance to Rs. 11, 500 crore.

Both the companies were planning to undertake another business deal on the financial services in India. Presently, Nippon Life is analyzing the future prospects of the deal in India. After the grant of IRDA on the deal, the shares of Reliance Capital increased by 4% at the index.

The shares of the Company increased by 3.69% amounting to Rs. 417 per share, at the Bombay Stock Exchange. Also the National Stock Exchange saw a gain up to 417.70 rupees.