Insurance Newsletter – June 2015

REGULATORY UPDATES

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (TRANSFER OF EQUITY SHARES OF INSURANCE COMPANIES) REGULATIONS, 2015

The Insurance Regulatory and Development Authority of India ("IRDAI") has, by way of a circular dated 18 May, 2015, issued the IRDAI (Transfer of Equity Shares of Insurance Companies) Regulations, 2015 ("Transfer Regulations") to govern the transfer of equity shares of insurance companies and prescribe conditions where such transfer would require prior approval of the IRDAI.

Key provisions of the Transfer Regulations are set out below.

1. Meaning of 'transfer of shares': It includes transfer of shares from an existing shareholder to another person and also a fresh issue of equity shares that changes the 'shareholding pattern'¹ of an insurance company.