Prudential, HCL edge closer to health cover JV launch

Prudential Plc and the HCL Group are moving closer to launching their proposed health insurance joint venture after making progress on regulatory clearances linked to India's Press Note 3 (PN3) norms, people familiar with the matter said.

The venture, structured as a 70:30 partnership, had been delayed for over a year due to approval requirements governing foreign investments from countries sharing land borders with India and due to complexities around downstream ownership. Prudential Plc is headquartered in London and Hong Kong, which is a part of China.

The recent easing of Press Note 3 (PN3) rules is helping move such deals forward. Introduced in 2020 to prevent opportunistic takeovers during the pandemic, PN3 required government approval for investments from countries sharing land borders with India.


The 2026 relaxations now allow certain investments to come through the automatic route, reducing delays.

It is expected to improve ease of doing business, attract more foreign capital. The relaxations should also help clear bottlenecks for transactions held up due to ownership structure complexities, industry experts said.

A Prudential spokesperson declined to comment beyond the statement issued in March last year, in response to an email query.