Between The Lines - August 2015

I. Foreign holding in Insurers' Parent not to be counted as FDI

The Ministry of Finance (MOF) has come out with a notification dated July 3, 2015 making an amendment to Indian Insurance Companies (Foreign Investment) Rules, 2015 ('Rules').

Earlier, as per notification dated February 19, 2015 issued by MOF, a requirement was imposed that the promoter of an Insurance company should also be Indian owned and controlled.

Rule 2 (l) of the Rules defines the term India Ownership. It states,

"Indian Ownership" of an Indian Insurance Company means more than 50 per cent of the equity capital in it is beneficially owned by resident Indian citizens or Indian companies, which are owned and controlled by resident Indian citizens;