India, May 8 -- The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a penalty of INR 1 Cr on IPO-bound Go Digit General Insurance for non-disclosure of a change in the conversion ratio of compulsorily convertible preference shares (CCPS).

IRDA has instructed the insurance firm to deposit this penalty amount within 45 days of the order and charge it to its shareholders' account.

The regulator had previously issued a show cause notice to the firm regarding the matter, involving the issuance of about 63,00,000 compulsorily convertible preference shares (CCPS) by Go Digit's parent company Go Digit Info Works Services (GDISPL) to Fairfax Group-owned FAL Corporation.

During the 2017 joint venture (JV), the agreed-...