EBCL CS EXECUTIVE

EBCL
AMENDMENT
DECEMBER 2022
Conditions applicable to Indian insurance companies and intermediaries or insurance
intermediaries:
1) Maximum Limit
Foreign Direct Investment and Foreign Portfolio Investment = 74%

2) Route- Automatic Route

3) Legal Framework
a) Compliance and provision of Insurance Act,1938
b) License and approval of IRDA
c) Provisions under the Indian Insurance Companies (Foreign Investment) Rules,
2015

4) Pricing Guideliness
Specified by RBI

5) Composition of Board
a) A majority of its directors;
b) A majority of its Key Management Persons; and
c) At least one among the Chairperson of its Board, its Managing Director and its
Chief Executive Officer shall be Resident Indian Citizens

INSURANCE INTERMEDIARY
1) Limit
100 percent

2) Route
Automatic Route

3) Applicability
Insurance brokers, re-insurance brokers, insurance consultants, corporate agents,
third party administrator, Surveyors and Loss Assessors and such other entities, as
may be notified by the Insurance Regulatory and Development Authority of India

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EBCL CS EXECUTIVE

4) Legal Framework
a) Subject to verification by the Authority
b) Indian Insurance Companies (Foreign Investment) Rules, 2015

5) The insurance intermediary that has majority shareholding of foreign investors shall
undertake the following
a) Company
Be incorporated as a limited company under the provisions of the Companies
Act,2013

b) Repatriation of Dividend
Shall take prior permission of the Authority for repatriating dividend

c) Upgradation
Shall bring in the latest technological, managerial and other skills

d) Payment within limits

Shall not make payments to the foreign group or promoter or subsidiary or
interconnected or associate entities beyond what is necessary or permitted by the
Authority

e) Composition of Board and key management person

Shall be as specified by the concerned regulators.

f) Disclosure of payments made

In the formats to be specified by the Authority

g) Resident Indian citizen

At least one from among the Chairman of the Board of Directors or the Chief
Executive Officer or Principal Officer or Managing Director of the insurance
intermediary shall be a resident Indian citizen

LIFE INSURANCE CORPORATION OF INDIA

1) Maximum Limit
20%

2) Route- Automatic Route

3) Legal Framework
a) Life Insurance Corporation Act,1956
b) Insurance Act,1938

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EBCL CS EXECUTIVE

4) Foreign Portfolio Investment

Governed by
a) Foreign Exchange Management (Non-Debt Instruments) Rules, 2019
b) Securities and Exchange Board of India(Foreign Portfolio Investors) Regulations,
2019

COMPETITION ACT

The Competition Commission of India (Procedure in regard to the transaction ofbusiness

relating to combinations) Amendment Regulations, 2022

1) Amendment- Revised format of Form-II (Long form of merger notification)

2) Amendment Dated-31-3-2022

3) Applicability
Post-combination market shareexceeds 15% in cases of horizontal overlap and 25%
in cases of vertical interface
These cases require detailed examination to assess the likely effect of combination
on competition in India

4) Objective of amendment

a) Ease of doing business

b) Reducing the compliance burden on the parties
c) Making the assessment of the combination more objective and focussed
d) Remove duplicity and limit the informationrequirement so that they remain
focused and relevant to the objective of assessment of amerger,
e) suitably clustering the information on common subject
f) streamlining the flow of information for better navigation and appreciation of
material furnished

5) Guidance Note
The CCI also intends to issue guidance notes for revised Form II in due course

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