Foreign investment limits in insurance revised; intermediaries can have full foreign ownership subject to regulatory conditions and pricing rules. A new rule allows a non-resident who acquires a right from a resident renouncer to convert that right into equity instruments (except share warrants) in accordance with the pricing guidelines in rule 21, and the explanation to rule 7 is omitted. Schedule I revisions clarify retail timing language and restructure insurance sector entries to permit full foreign investment in intermediaries on the automatic route subject to IRDAI verification, while imposing detailed conditions on Indian insurance companies regarding ownership, control, licensing, governance and compliance. Schedule II now gives FPIs that breach prescribed limits an option to divest within a short trading period or be reclassified as FDI, with notification duties and non reckoning of interim breach.
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Foreign investment limits in insurance revised; intermediaries can have full foreign ownership subject to regulatory conditions and pricing rules.
A new rule allows a non-resident who acquires a right from a resident renouncer to convert that right into equity instruments (except share warrants) in accordance with the pricing guidelines in rule 21, and the explanation to rule 7 is omitted. Schedule I revisions clarify retail timing language and restructure insurance sector entries to permit full foreign investment in intermediaries on the automatic route subject to IRDAI verification, while imposing detailed conditions on Indian insurance companies regarding ownership, control, licensing, governance and compliance. Schedule II now gives FPIs that breach prescribed limits an option to divest within a short trading period or be reclassified as FDI, with notification duties and non reckoning of interim breach.
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