Max Financial Services and HDFC said that their respective boards have approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential integration by the way of a merger.

The proposed arrangements would be subject to due diligence, definitive documentation and applicable board, shareholder, regulatory, respective High Courts/NCLT, and other third party approvals, as may be applicable, according to Max Financial Services.

If the proposed transaction metalizes, it would be the biggest consolidation in the country’s private insurance sector, which currently has 24 life insurers and 29 general insurers.

"The agreement provides for a mutually agreed exclusivity period for due diligence and discussions between the parties in relation to the proposed transaction," Max Financial Services said in a statement to BSE.