Foreign Investment in insurance intermediaries

INSURANCE REGULATORY AND
DEVELOPMENT AUTHORITY OF INDIA

IRDA/INT/CIR/MISC/119/05/20
18^th May, 2020

CIRCULAR

To

All Insurance Intermediaries

Re: Foreign Investment in insurance intermediaries

a) Notification of Press Note No. 3 (2020 Series);

b) Notification of the Foreign Exchange Management (Non-Debt Instruments) (Second Amendment) Rules, 2020

A. Press Note No. 3 (2020 Series)

1. Attention of the insurance intermediaries is drawn to Press Note No. 3 (2020 Series) dated 17^th April, 2020 issued by FDI Policy Section, Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry, GOI (copy enclosed as Annexure – I).

B. Notification of the Foreign Exchange Management (Non-Debt Instruments) (Second Amendment) Rules, 2020

1. Attention of the insurance intermediaries is drawn to Notification of the Foreign Exchange Management (Non-Debt Instruments) (Second Amendment) Rules, 2020 issued by Department of Economic Affairs, Ministry of Finance, GOI (copy enclosed as Annexure – II).

2. In view of the said notification, the insurance intermediaries shall comply with the “other conditions” given in S. No. F.8.3 of the said Rule.

C. Undertaking

1. In order to ensure the compliance to the above notifications, the insurance intermediaries shall submit to the Authority the following:

a. An undertaking duly signed by the Principal Officer and Compliance Officer, as applicable, confirming compliance of (A) and (B) above.

b. Such undertaking shall be accompanied by

i. A certified copy of resolution passed by the Board of Directors of the insurance intermediary confirming the compliance of (A) and (B) above

ii. Necessary Government of India’s approval with respect to compliance of Press Note 3, wherever applicable.

In addition to above, the insurance intermediaries shall also comply with provisions of the Indian Insurance Companies (Foreign Investment) Rules, 2015, IRDAI (Insurance Intermediaries) (Amendment) Regulations, 2019 and IRDAI’s Guidelines dated 03.01.2020 on repatriation of dividends by insurance intermediaries having majority investment by foreign investors.

All insurance intermediaries are hereby advised to ensure compliance.

HoD (Intermediaries)

Enclosed: a/a