A panel led by Dinesh Khara, appointed by the Insurance Regulatory and Development Authority of India (IRDAI), has recommended against allowing mergers between insurers and non-insurance firms. This recommendation was submitted amid a broader review of Insurance Act reforms and has implications for proposed mergers such as that between Max Financial Services and Max Life Insurance. The IRDAI is expected to take suggestions from the Khara-led committee to the government. Following the panel's recommendation, Max Financial Services saw a decline in its stock price. On the same day, Indian stock markets closed lower, with the Sensex dropping 375.24 points to 82,259.24 and the Nifty falling 100.60 points to 25,111.45. The decline was attributed to selling pressure in IT and banking sectors, influenced by weak June quarter earnings. The Realty sector was the top gainer, rising 1.23%, while IT stocks dragged the benchmarks down. The market experienced a cautious and volatile session, ending in negative territory after snapping a two-day gaining streak.