IRDAI withdraws guidelines on "Indian owned and controlled"

Aug 03, 2021 | by Avantis RegTech Legal Research Team

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Finance & Taxation Compliance

The Insurance Regulatory and Development Authority of India (IRDAI) on July 30, 2021 withdraws the guidelines on “Indian owned and Controlled” which were issued with an objective to bring more clarity on the issue of compliance with the manner of "Indian owned and controlled".

The following points are to be noted:

• In  Insurance (Amendment) Act, 2021, Section 2 (7A) (b), which specifies the definition of Indian Insurance Company, Foreign investment ceiling has been increased from existing 49 percent to 74 percent.

The Explanation which mandated the requirement of “Indian owned and controlled” has been omitted.

• The definitions of “Control”, “Indian Control of an Indian Insurance Company” and “Indian Ownership” provided under Indian Insurance Companies (Foreign Investment) Rules, 2015 have been omitted vide Indian Insurance Companies (Foreign Investment) (Amendment) Rules, 2021.

[Circular Ref. No: IRDAI/F&A/CIR/MISC//211/07/2021]

 


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