Insurance Newsletter – September 2015

REGULATORY UPDATES

EXPOSURE DRAFT OF 'OTHER FORMS OF CAPITAL' REGULATIONS, 2015 ISSUED

The (Indian) Insurance Act, 1938 (as amended by the Insurance Laws (Amendment) Act, 2015) ("Amendment Act") allows the capital of an Indian insurance company to consist of equity shares and such other forms of capital as may be prescribed by regulations.

The Insurance Regulatory and Development Authority of India ("IRDAI") has, by way of a circular dated 28 August, 2015 issued a draft of the IRDAI (Other Forms of Capital) Regulations, 2015 ("Draft OFC Regulations") to govern the issuance of other forms of capital by Indian insurance companies, and has invited stakeholders' comments by 10 September, 2015.