Mumbai, Sept. 24 -- PB Fintech Ltd. led a slide in shares of Indian insurance companies, distributors and lenders on Thursday, after the country's insurance regulator proposed caps on commissions and tighter management expenses.

PB Fintech plunged by a record 23%, its worst day since its November 2021 debut. Max Financial Services Ltd. slumped as much as 12%, L&T Finance Ltd. slipped by 10% and HDFC Life Insurance Ltd. tumbled as much as 8.5%.

Late Wednesday, the Insurance Regulatory and Development Authority of India, or IRDAI, proposed measures that could slash insurance fee income for banks and digital brokers by as much as 90% in high-margin categories, as per analysts. The proposals aim to enforce long-term industry discipline and ...