The IRDAI will soon provide more clarity on capital structure of the applicants seeking new registration and provide more clarity on applicability of requirement of prior- approval for transfer of shares
Hyderabad:
Announcing some key measures, Indian insurance regulator IRDAI on Friday said it has decided for the removal of requirement of prior-approval of the IRDAI for listing of shares of insurers on stock exchanges subject to compliance of specified conditions.
It has also decided to adopt enabling provision for relaxation of lock-in period in case the insurer or the shareholder is in financial distress or to facilitate amalgamation of insurers or shareholders.
The IRDAI will soon provide more clarity on capital structure of the applicants seeking new registration and provide more clarity on applicability of requirement of prior- approval for transfer of shares.
These new steps are part of Exposure Draft of IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Indian Insurance Companies) Regulations, 2024 which will be implemented soon, said the IRDAI.
As part of the comprehensive review of regulations being undertaken by the IRDAI, to enhance the ease of doing business and also reduce compliance burden for stakeholders while also ensuring that interests of policyholders continues to be protected, Insurance Councils were asked to submit their recommendations. Councils constituted the Regulations Review Committee (RRC).
The RRC recommended IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Indian Insurance Companies) Regulations, 2024 after consolidating the following regulations like IRDAI (Registration of Indian Insurance Companies) Regulations, 2022, RDAI (Other Forms of Capital) Regulations, 2022,IRDAI (Manner of Assessment of Compensation to Shareholders or Members on Amalgamation) Regulations, 2021,IRDAI (Issuance of Capital by Indian Insurance Companies transacting other than Life Insurance business) Regulations, 2015,IRDAI (Issuance of Capital by Indian Insurance Companies transacting Life Insurance business) Regulations, 2015, IRDA (Scheme of Amalgamation and Transfer of Life Insurance Business) Regulations, 2013,IRDA (Scheme of Amalgamation and Transfer of General Insurance Business) Regulations, 2011.
After suitable consideration of the recommendations of the RRC, the draft of IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Indian Insurance Companies) Regulations, 2024 has been prepared, said the IRDAI.