The Insurance Regulatory and Development Authority of India (IRDAI) vide circular dated on July 30, 2021 has withdrawn the guidelines on “Indian owned and Controlled”. The circular is issued in the light of two recent amendments:
- Insurance (Amendment) Act, 2021 by which Foreign investment ceiling has been increased from existing 49 percent to 74 percent.
- The definitions of “Control”, “Indian Control of an Indian Insurance Company” and “Indian Ownership” provided under Indian Insurance Companies (Foreign Investment) Rules, 2015 have been omitted vide Indian Insurance Companies (Foreign Investment) (Amendment) Rules, 2021.
