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Ministry of Finance, in due consultation of the suggestions received on the draft rules, has issued theIndian Insurance Companies (Foreign Investment) Amendment Rules, 2021 in order to further amend theIndian Insurance Companies (Foreign Investment) Rules, 2015. Read the official notification and the amendments made, below: MINISTRY OF FINANCE (Department of Financial Services) NOTIFICATION New Delhi, the 19th May, 2021 G.S.R. 337(E).Whereas, certain draft rules, namely, the Indian Insu
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FAQ :
These are new rules issued by the Ministry of Finance that amend the existing Indian Insurance Companies (Foreign Investment) Rules, 2015, concerning foreign investment in Indian insurance companies.
The Indian Insurance Companies (Foreign Investment) Amendment Rules, 2021, came into force on the date of their publication in the Official Gazette.
The rules substitute the previous limit, allowing for up to seventy-four percent (74%) foreign investment in Indian insurance companies.
In Indian insurance companies with foreign investment, a majority of directors, a majority of Key Management Persons, and at least one of the chairperson, managing director, or CEO must be Resident Indian Citizens.
Yes, every Indian insurance company with foreign investment existing before the commencement of these amendment rules must comply with the new provisions regarding directors and key management personnel within one year of the commencement date.
The definition has been updated to mean the sum total of direct and indirect foreign investment by Foreign Investors in an Indian Insurance Company, calculated as specified in regulations made by the Authority.
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