HDFC Mutual Fund bought 25,00,000 shares of PB Fintech Limited, the parent company of Policybazaar, in a bulk deal on the NSE on September 24, 2026. The shares were purchased at a weighted average price of Rs 1,282.30 apiece, valuing the transaction at approximately Rs 320.6 crore.

The purchase came on a day when PB Fintech shares faced heavy selling pressure following the Insurance Regulatory and Development Authority of India’s consultation paper proposing changes to insurance distribution commissions, expenses of management and sales practices.

PB Fintech closed at Rs 1,244 on September 24, compared with Rs 1,886.30 in the previous session, marking a sharp decline after investors reassessed the potential impact of the proposed regulatory changes on the company’s distribution economics.

The proposed commission reset is expected to make FY28 a transition year for PB Fintech. During a management call with analysts, the company said it does not plan mass layoffs or drastic cost reductions. Instead, management indicated that hiring and marketing expenditure could be moderated to protect profitability while the company adapts its cost structure and distribution model to the proposed framework.

Management expects FY28 to remain a volatile transition period, with earnings recovery targeted from FY29. The company is expected to focus on adjusting its distribution model and cost structure as the regulatory framework evolves.

The sharp decline in PB Fintech also resulted in a significant reduction in the value of mutual fund holdings in the company. The combined value of mutual fund investments in PB Fintech fell by nearly Rs 9,700 crore on September 24 following the stock’s decline.

Brokerage commentary has highlighted the potential impact of the proposed regulatory changes on pure insurance distribution platforms. Bernstein said the proposed commission reductions were more severe than expected and could put pressure on PB Fintech’s unit economics, particularly in the health and motor insurance segments. The brokerage also expects near term pressure on the stock and potential pushback from the insurance distribution industry.

The regulatory proposal remains under consultation, meaning the final framework and its eventual impact on PB Fintech’s earnings and business model could differ from the current proposals. Investors are therefore likely to track further regulatory developments, management actions on costs and the pace of earnings recovery through FY28 and FY29.