Entry And Exit Options - Indian Insurance COS

The control and acquisition of entities in India by foreign investors and private equity funds (PE Funds), is regulated by the foreign investment norms specified by the Reserve Bank of India (RBI), the norms specified by the Securities Exchange Board of India (SEBI) (where the entity is a listed entity), and any other laws/regulations governing the business of the target entity. Entities engaged in insurance business are required to follow additional norms regarding foreign investment as specified by the Insurance Regulatory and Development Authority of India (IRDAI). In this article we have set out the frequently asked questions in relation to foreign investment in insurance companies, and the responses to these questions in light of the extant insurance statutory and regulatory framework.