Executive Summary:
This document is the Insurance Regulatory and Development Authority (IRDA) Registration of Indian Insurance Companies Sixth Amendment Regulations, 2014. It defines a Core Investment Company (CIC) and modifies regulations regarding the proportion of paid-up equity share capital held by certain categories of persons in an Indian promoter company. The regulations came into force on the date of their publication in the Official Gazette, April 28 2014.
Key Points / Main Content:
Definitions:
* A Core Investment Company (CIC) is defined as per the Core Investment Companies (Reserve Bank) Directions, 2011, as amended.
Amendment to Regulation 11:
* Subregulation 1(iii) of Regulation 11 is substituted.
* The substituted subregulation pertains to the quantum represented by the proportion of paid-up equity share capital to the total issued equity capital of an Indian promoter company.
* This applies to promoter companies mentioned in sub-clauses (i), (iia), or (vi) of clause (g) of regulation 2.
* It concerns equity share capital held or controlled by categories of persons mentioned in sub-clauses (i) and (ii) of this subregulation.
Impact Analysis:
Insurance Regulatory and Development Authority (IRDA):
* Impact: The IRDA is responsible for implementing and enforcing the amended regulations.
* Action Required: Update internal processes and guidelines to reflect the new definition of CIC and the changes to Regulation 11.
Indian Insurance Companies:
* Impact: Insurance companies, particularly those with promoter companies fitting the descriptions in Regulation 2(g) and Regulation 11(1)(iii), are directly affected by the new regulations.
* Action Required: Review their equity structures and ensure compliance with the amended regulations, especially concerning the proportion of paid-up equity share capital.
Promoter Companies:
* Impact: Promoter companies, as defined in the regulation, need to understand the implications of the amended regulations on their equity holdings.
* Action Required: Assess the proportion of their paid-up equity share capital held by relevant parties and ensure compliance.
Key Entities Referenced
Insurance Regulatory and Development Authority: Regulatory body overseeing the insurance sector in India, also referred to as 'the Authority'.
Insurance Act, 1938: Indian legislation governing the insurance industry. Referenced in the context of powers conferred to the Authority.
Insurance Regulatory and Development Authority Act, 1999: Indian legislation establishing the Insurance Regulatory and Development Authority.
Insurance Regulatory and Development Authority Registration of Indian Insurance Companies Sixth Amendment Regulations, 2014: The specific regulation being enacted, amending previous regulations related to the registration of Indian insurance companies.
Insurance Advisory Committee: Committee consulted by the Insurance Regulatory and Development Authority.
Core Investment Companies Reserve Bank Directions, 2011: Regulations pertaining to Core Investment Companies (CICs) issued by the Reserve Bank of India (RBI).
Hyderabad, Telangana: Location where the notification was issued.
T.S. Vijayan: Chairman of the Insurance Regulatory and Development Authority.
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1777 GI/2014 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
NOTIFICATION
Hyderabad, the 24th April, 2014
Insurance Regulatory and Development Authority (Registration of Indian Insurance Companies) (Sixth
Amendment) Regulations, 2014
F. No. IRDA/Reg./6/89/2014.—In exercise of the powers conferred by Section 114A of the Insurance Act,
1938 (4 of 1938) read with Sections 14 and 26 of the Insurance Regulatory and Development Authority Act,
1999 (41 of 1999), the Authority in consultation with the Insurance Advisory Committee, hereby makes the
following Regulations, namely :—
CHAPTER 1
1. Short title and commencement
(1) These Regualtions may be called the Insurance Regulatory and Development Authority
(Registration of Indian Insurance Companies) (Sixth Amendment), Regulations, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In regulation 2(g), after clause (ii), the following clause is inserted namely:—
"(ii a) a Core Investment Company (CIC) as defined under Core Investment Companies (Reserve
Bank) Directions, 2011 as amended from time to time."
CHAPTER 3
3. For sub-regulation (1)(iii) of Regulation 11, the following sub-regulation is substituted:—
“(iii) the quantum represented by that proportion of the paid up equity share capital to the total issued
equity capital of an Indian promoter company mentioned in sub-clause (i) or sub-clause (iia) or in 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.”
T.S.VIJAYAN, Chairman
[ADVT. III/4/161/14/Exty.]
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.