Page 51 - Insurance Times July 2016
P. 51
Circular
IRDAI Circular
Draft Guidelines for Listed Indian shall seek prior approval of the Authority in the
Insurance Companies manner specified in these guidelines.
Date:15-06-2016 4. Provisions Relating to Shareholding:
a. Every insurance company which intends to go for
The Authority, in exercise of the powers conferred by Section listing shall convert its equity share holding in Demat
14 of Insurance Regulatory and Development Authority of format.
India Act, 1999, read with clause (b) of sub-section (4) of
Section 6A of the Insurance Act, 1938, proposed to issue b. The minimum shareholding by promoters / promoter
Guidelines for Listed Indian Insurance Companies. group shall at all times be maintained at 50 percent
of the paid up equity capital of the insurer. However,
A summary of these guidelines is as under: where the present holding of the promoters is below
50 percent, such holding shall be the minimum
1. These Guidelines shall be applicable to all insurers who holding.
have listed their equity shares or are in the process of
getting their shares listed on the stock exchanges in c. Ownership limits for all shareholders, other than
relation to transfer or proposed transfer of shares. promoters/ promoter group, in a definitive time
frame as may be specified by the Authority, shall be
2. These guidelines shall be in addition to IRDAI (Issuance based on categorization of the shareholders under
of Capital by Indian Insurance Companies transacting two broad categories viz. (i) natural persons
Life Insurance Business) Regulations, 2015 and IRDAI (individuals) and (ii) legal persons (entities/
(Issuance of Capital by Indian Insurance Companies institutions).
transacting other than Life Insurance Business)
Regulations, 2015. d. A subsidiary company may invest in a listed insurance
company, provided it complies with all the provisions
3. Provisions relating to Transfer of the Shares: as may be applicable for such an investment under
a. Every person who intends to make any transfer/ applicable laws.
make any arrangement or agreement for
transferring 1 percent or more but less than 5 5. The Guidelines shall also be applicable to an insurance
percent of the paid up equity share capital of the intermediary licensed by the Authority provided that such
concerned insurer, may do so, subject to the insurance intermediaries are drawing more than 50
compliance of Fit and Proper criteria. percent of its revenue from insurance business.
b. Every person who intends to make an acquisition / The comments/suggestions should reach by 22nd June, 2016
make an arrangement or agreement for acquisition to the undersigned by e-mail at rksharma [at] irda [dot] gov
which will / is likely to take the aggregate holding of [dot] in with a copy to Dr. Mamta Suri, HOD-F&A at mamta
such person together with shares held by him, his [at] irda [dot] gov [dot] in
relatives, associate enterprises and persons acting
in concert with him, to 5 per cent or more of the R K Sharma
paid-up equity share capital of the concerned insurer Joint Direct
The Insurance Times, July 2016 51
