Indian Insurance Companies Foreign Investment Amendment Rules, 2016

MINISTRY OF FINANCE

(Department of Financial Services)

NOTIFICATION

New Delhi, the 16th March, 2016

G.S.R. 314(E).– In exercise of the powers conferred by clause (aaa) of sub-section (2) of section 114 of the Insurance Act, 1938 read with clause (b) of sub-section (7A) of section 2 of the Insurance Act, 1938 and section 24 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), the Central Government hereby makes the following rules further to amend the Indian Insurance Companies (Foreign Investment) Rules, 2015, namely:-

1.    (1) These rules may be called Indian Insurance Companies (Foreign Investment) Amendment Rules, 2016.

(2) They shall come into force on the date of their publication in the Official Gazette.

2.  In the Indian Insurance Companies (Foreign Investment) Rules, 2015,

(1) for rule 5, the following rule shall be substituted, namely:-

“5. The Foreign Investment proposals up to forty-nine per cent of the total paid up equity of the Indian Insurance Company shall be allowed on the automatic route subject to verification by the Insurance Regulatory and Development Authority of India”.

(2) rule 6 shall be omitted.

[F. No. 12018/1/2006-Ins.IV]

ALOK TANDON, Jt. Secy.

Note: – The principal rules were published in the Gazette of India, Extraordinary, vide and subsequently amended by notification vide number G.S.R. 534 (E), dated the 3rd July, 2015.