Corporate Updates – 25-02-2015


RBI with an intention to smoothen the functioning of Securitisation Company / Reconstruction Company (SC / RC) has decided that, henceforth the changes relating to any transfer of shares by which the transferee becomes a sponsor or any transfer of shares by which the transferor ceases to be a sponsor and an aggregate transfer of ten percent or more of the total paid up share capital of the SC/RC by a sponsor during the period of five years commencing from the date of certificate of registration, in the share holding pattern of the SC/RC will require Reserve Bank’s prior approval. All other terms and conditions as stipulated to the SC/RC, while granting them the Certificate of Registration, will continue to apply.

FDI – Insurance Sector:

The Indian Insurance Companies (Foreign Investment) Rules, 2015 have been notified by the Government of India. According to these rules, foreign equity investment cap of 49 per cent is applicable to all Indian insurance companies and they shall not allow the aggregate holdings by way of total foreign investment in their equity shares by Foreign Investors, including portfolio investors, to exceed forty-nine per cent of their paid-up equity capital and also shall ensure that ownership and control shall remain at all times in the hands of resident Indian entities as referred to in these rules. The foreign equity investment cap of 49 per cent shall also apply to Insurance Brokers, Third Party Administrators, Surveyors and Loss Assessors and other insurance intermediaries appointed under the provisions of the IRDA Act, 1999.

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