Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

INDIAN INSURANCE COMPANIES (FOREIGN INVESTMENT) RULES, 2015 – AN OVERVIEW

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... INDIAN INSURANCE COMPANIES (FOREIGN INVESTMENT) RULES, 2015 – AN OVERVIEW - By: - Mr. M. GOVINDARAJAN - Corporate Laws / IBC / SEBI - Dated:- 28-3-2015 - - In exercise of the powers conferred by Section 114 (2) (aaa) of the Insurance Act, 1938 read with Section 2(7A) (b) of the Insurance Act, 1938 and Section 24 of the Insurance Regulatory and Development Authority Act, 1999, the Central Governm .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ent make rules in respect of foreign investment in Indian insurance companies namely Indian Insurance Companies (Foreign Investment) Rules, 2015 ( Rule for short). The said Rules came into effect from 19.02.2015. The Rules prescribes the quantum of foreign direct investment as detailed below: No Indian Insurance company shall allow the aggregate holdings by way of total foreign direct .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... investment in its equity shares by foreign investors including portfolio investments, to exceed 49% of the paid up equity capital of such Indian Insurance Company. The term foreign investor is defined vide Rule 2(g) for the purpose of these rules as all eligible nonresident entities or persons resident outside India investing in the equity share of an Indian Insurance company, as permitted .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... to do through the Foreign Direct Investment and Foreign Portfolio Investment windows under FEMA regulations, 2000 as described in these rules. The term foreign portfolio investments is defined vide Rule 2(h) as including investments to the equity share of an Indian Insurance company by Foreign Institutional Investors, Foreign Portfolio Investors, Non Resident Indians, Qualified Foreign invest .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ors and other eligible portfolio investor entities of persons in accordance with provisions contained in Regulations 5 (2), (2A), (3) and (8) of FEMA Regulations, 2000. The term total foreign investment in an Indian Insurance Company is defined vide Rule 2(p) as the sum total of direct and indirect foreign investment by the foreign investors in such company, calculated in accordance with the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Insurance Regulatory and Development Authority (Registration of Companies) Regulations 2000, read with para 4.1.4. of the Consolidated FDI policy of the Government of India. An Indian Insurance Company shall ensure that its ownership and control shall remain at all times in the hands of the resident India entities as indicated below: Indian Control of an Indian Insurance Company - defi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ned under Rule 2(k) as control of such Indian Insurance Company by resident Indian citizen or Indian Companies which are owned and controlled by resident Indian citizens; Indian Ownership of an Indian Insurance Company - defined under Rule 2(l) as more than 50% of the equity capital in it is beneficially owned by resident Indian citizens or Indian companies which are owned and controlled by .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... resident Indian citizens. The foreign direct investment proposals up to 26% of the total paid up equity of the Indian Insurance Company shall be allowed on the automatic route; FDI proposals which take the total foreign investment in the Indian Insurance companies more than 26% and up to the cap of 49% shall be on the FIPB route and shall require FIPB approval subject to compli .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ance of the provisions of the Act; Foreign Portfolio Investment in an Indian Insurance Company shall be governed by the provisions contained in Regulation 5(2), (2A), (3) and (8) of FEMA Regulations, 2000 and provisions of the Securities Exchange Board of India (Foreign Portfolio Invesotrs) Regulations; Any income of the foreign investment of an Insurance company shall be in accordance with .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the pricing guidelines specified by RBI under FEMA; The Foreign equity investment cap of 49% shall apply on the same terms as above to - Insurance brokers; Third party administrators; Surveyrs; and Loss assessors; and Other insurance intermediaries appointed under the provisions of IRDA, 1999; Where an entity like a bank, whose primary business is outside the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... insurance area,is allowed by the authority to function as an insurance intermediary, the foreign equity investment caps applicable in that section shall continue to apply, subject to the condition that the revenues of such entities from their primary business must remain above 50% of their total revenue in any financial year; Other aspects related to or associated with or flowing from matters .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... related for foreign investments in an Indian Insurance Company, which are the subject matter of these rules and fall within the regulatory ambit of the authority, will be regulated as per regulations to be framed by the authority, consistent with the relevant statutes and other rules framed there under. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates