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INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (REGISTRATION OF INDIAN INSURANCE COMPANIES)-(FOURTH AMENDMENT) REGULATIONS, 2013
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
NOTIFICATION
Hyderabad, the 7th February, 2013
Insurance Regulatory and Development Authority
(Registration of Indian Insurance Companies) (Fourth Amendment) Regulations, 2013
F.No.IRDA/Reg./3/61/2013.—In exercise of the powers conferred by section 114A of the Insurance Act, 1938 (4 of 1938) real with sections 14 and 26 of the Insurance Regulatory and Development Authority Act, 1999 (4 of 1999), the Authority in consultation with the Insurance Advisory Committee hereby makes the following regulations, namely:-
Short title and commencement
1.(1) These regulations may be called the Insurance Regulatory and Development Authority (Registration of Indian Insurance Companies)-(Fourth Amendment) Regulations, 2013.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Definitions
Regulation 2(g) shall be substituted with the following:
(g) “Indian promoter” means and includes –
(i) a company formed under the Companies Act, 1956 (1 of 1956), which is not a subsidiary as defined in section 4 of that Act;
(ii) a banking company as defined in sub-section (4A) of section 2 of the Act but does not include a foreign bank or branch thereof functioning in India;
(iii) a Public financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956);
(iv) a co-operative society registered under any relevant law for the time being in force;
(v) a person, who is an Indian citizen or a combination of persons who are Indian citizens;
(vi) a limited liability partnership formed under the Limited Liability Partnership Act, 2008 ([6] of 2009) with no partner being a non-resident entity/person resident outside India as defined in clause (w) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999) FEMA; and not being a foreign limited liability partnership registered thereunder;
Regulation 11 shall be substituted with the following:
11. Manner of calculation of twenty six per cent equity capital held by a foreign company –
(1) For the purposes of the Act and these Regulations, the calculation of the holding of equity shares by a foreign company either by itself or through its subsidiary companies or its nominees (hereafter referred to as foreign investor) in the applicant company, shall be made as under and shall be aggregate of, -
(i) the quantum of paid up equity share capital held by the foreign company either by itself or through its subsidiary companies or nominees in the applicant company;
(ii) the quantum of paid up equity share capital held by other foreign investors, non-resident Indians, overseas corporate bodies and multinational agencies in the applicant company; and
(iii) the quantum represented by that proportion of the paid up equity share capital to the total issued equity capital of an Indian promoter mentioned in sub-clause (i) or sub-clause (vi) of clause (g) of regulation 2 held or controlled by the category of persons mentioned in sub-clauses (i) and (ii) of this sub regulation.
Explanation: For purposes of calculation referred to above, account need not be taken of the holdings of equity in an Indian promoter held by foreign institutional investors, other than the foreign promoters of the applicant and their subsidiaries and nominees, and Indian mutual funds to the extent the investment of foreign institutional investors and Indian mutual funds are within the approved limits laid down by the Securities and Exchange Board of India under its rules, regulations or guidelines issued from time to time.
(2) Every insurer who has been granted registration under the Act shall, within 15 days of the end of every quarter, furnish to the Authority a statement indicating changes exceeding 1% of the issued capital in the holding of the shares in his company and these of the promoter.
(3) Interpretation. The interpretation of this regulation will be that of the Authority, whose decision on all issues will be binding on all applicants/insurers and will be final.
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