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TMI BlogReview of FDI Policy on Insurance Sector - Amendment Consolidated FDI Policy Circular 2014X X X X Extracts X X X X X X X X Extracts X X X X ..... y Administrators (iv) Surveyors and Loss Assessors 26% (FDI+FII/FPI+NRI) Automatic 6.2.17.7.2 Other conditions (1) FDI in the Insurance sector, as prescribed in the Insurance Act, 1938, is allowed under the automatic route. (2) This will be subject to the condition that Companies bringing in FDI shall obtain necessary license from the Insurance Regulatory & Development Authority for undertaking insurance activities. (3) The provisions of paragraphs 6.2.17.2.2(4)(i) (c) & (e), relating to 'Banking Private Sector', shall be applicable in respect of bank promoted insurance companies. (4) Indian Insurance Company is defined as a company: (a) which is formed and registered under the Companies Act, 1956; (b) in which th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Insurance Company (ii) Insurance Brokers (iii) Third Party Administrators (iv) Surveyors and Loss Assessors (v) Other Insurance Intermediaries appointed under the provisions of Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) 49% {(FDI+FPI(FII,QFI)+NRI+FVCI+DR} Automatic up to 26% Government route beyond 26% and up to 49% 6.2.17.7.2 Other conditions (a) No Indian insurance company shall allow the aggregate holdings by way of total foreign investment in its equity shares by foreign investors, including portfolio investors, to exceed forty-nine per cent of the paid up equity capital of such Indian insurance company. (b) Foreign direct investment proposals which take the total foreign investment in the Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s allowed by the Insurance Regulatory and Development Authority of India to function as an insurance intermediary, the foreign equity investment caps applicable in that sector shall continue to apply, subject to the condition that the revenues of such entities from their primary (i.e. non-insurance related) business must remain above 50 per cent of their total revenues in any financial year. (i) The provisions of paragraphs 6.2.17.2.2(4) (i) (c) & (e), relating to 'Banking Private Sector', shall be applicable in respect of bank promoted insurance companies. (j) Terms 'Control', 'Equity Share Capital', 'Foreign Direct Investment' (FDI), 'Foreign Investors', 'Foreign Portfolio Investment', & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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