Regulation 3 governs capital, solvency and submission of an abstract of actuarial report by an IIO undertaking life insurance business.

International Financial Service Centre Insurance Offices undertaking life insurance business fall within the framework governing assets, liabilities, solvency margin and abstracts of actuarial reports. Insurance Offices established in an unincorporated form are excluded from solvency-margin and related requirements, but must comply with the related registration requirement. Prescribed reporting formats continue to apply to such unincorporated Insurance Offices.

Life insurance business within International Financial Services Centres is governed by a regulatory scheme concerning assets, liabilities, solvency margin and abstracts of actuarial reports. The scheme is made under the International Financial Services Centres Authority Act, 2019, and the Insurance Act, 1938. It enters into force upon publication in the Official Gazette.

IIOs must calculate Available Solvency Margin from available assets less prescribed liabilities and adjustments, and determine the solvency ratio by dividing ASM by Required Solvency Margin. RSM is the higher of the premium-based and incurred-claims-based requirements, calculated using prescribed gross and net premium and claims measures. A minimum solvency ratio of 150% is the control level of solvency. Reporting requires separate disclosure of policyholder and shareholder funds, statutory auditor certification, and countersignature by specified officers.

Technical reserves must be determined separately for each line of business and comprise premium reserves and claims reserves. Premium reserves include UPR, PDR and URR, while claims reserves include OCR and IBNR reserves. Known outstanding claims must be provided in full; estimated claims may be valued case by case or, where appropriate, through actuarial statistical methods. Every insurer must prepare Form ALSM-GI-L and obtain certifications from the statutory auditor, Appointed Actuary, Principal Officer and Chief Financial Officer concerning liability valuation, data reliability, reconciliation, and UPR determination.

Specified unrealisable or non-qualifying assets must be valued at zero for insurer solvency purposes, including certain outstanding co-insurer and re-insurer balances, aged unutilised Goods and Services Tax credit, fixed assets, deferred expenses and fictitious assets. Insurers must prepare Form ALSM-GI-A, identifying audited balance-sheet assets, inadmissible assets, current liabilities and provisions. Admissible assets for solvency are calculated by deducting inadmissible assets and current liabilities and provisions from total audited balance-sheet assets.

Regulation 9 disapplies, from commencement, the 2016 framework on assets, liabilities and solvency margin, including related circulars and guidelines, within International Financial Services Centres. Prior actions under that framework are preserved and deemed taken under corresponding provisions. An IIO already operating in an International Financial Services Centre must satisfy any additional applicable requirements within six months of commencement or within an extended period specified by the Authority.

The Authority may issue guidance notes or circulars to clarify difficulties in the application or interpretation of the regulations. It may also relax strict enforcement of any provision on an application accompanied by the specified non-refundable processing fee, with reasons recorded in writing.

Regulation 7 empowers the Authority to specify norms, procedures, processes and manners of compliance for IIOs, for implementation of the assets, liabilities and solvency margin requirements and incidental matters. It supplies the procedural mechanism through which IIOs comply with specified measures for the regulatory framework governing general, health and re-insurance business.

Inspection, investigation, information and disclosure powers enable the Authority to examine the affairs of an IIO. Information may be required from the IIO or its parent entity, and the Authority may prescribe disclosures that an IIO must make regarding its activities.

IIOs must submit prescribed statements on admissible assets, liabilities, and solvency margin in the applicable forms and schedules, at intervals specified by the Authority. They must also furnish an Annual Actuarial Report, actuarially certified valuation of assets and liabilities, and computation of solvency margin, together with any further reports directed by the Authority. The requirements apply even where capital is maintained under home country regulations.

Claim reserves comprise outstanding claim reserves and incurred but not reported claim reserves. Outstanding claim reserves cover reported claims outstanding at the accounting date and include allocated loss adjustment expenses. Incurred but not reported claim reserves include reopened claims, unreported claims, claims in transit, allocated loss adjustment expenses, and reserves for expected changes in reported-claim estimates. Unexpired risk reserves consist of unearned premium reserves and premium deficiency reserves for anticipated insufficiency in meeting claims and related expenses.

Regulation 3 specifies that capital and solvency requirements govern IIOs undertaking general, health, or re-insurance business. Its objective is to prescribe requirements related to capital and solvency for IIOs carrying on these business categories under the International Financial Services Centres Authority (Assets, Liabilities, and Solvency Margin of General, Health and Re-Insurance Business) Regulations, 2023.

Regulation 2 applies the assets, liabilities and solvency margin framework to International Financial Service Centre Insurance Offices undertaking general, health or re-insurance business. Unincorporated International Financial Service Centre Insurance Offices are excluded from solvency margin and related requirements, but must comply with the related registration requirement. Prescribed reporting formats continue to apply to such unincorporated offices.

International Financial Services Centres Authority exercises delegated powers under its governing statute and the Insurance Act, 1938 to prescribe the International Financial Services Centres Authority (Assets, Liabilities, and Solvency Margin of General, Health and Re-insurance Business) Regulations, 2023. The regulatory subject is assets, liabilities and solvency margin in general, health and re-insurance business, with legal effect beginning upon publication in the Official Gazette.

Classification as a re-insurance contract requires risk transfer for the relevant accounting year and protection for the ceding insurer or retrocessionaire against negative financial effects of underlying business. In alternative risk transfer arrangements combining re-insurance and financing, separable elements are accounted for individually under the IIO's accounting standards; inseparable arrangements are treated as financial transactions, with accounting determined by substance over form. Each IIO must adopt a Board-approved segment-wise retention policy, maximise retention according to financial strength and risk quality, avoid fronting, and meet any specified minimum retention.

Temporary lending of securities under the Securities Lending Scheme, 1997 is a taxable service rather than a transaction involving disposal of securities. The lending fee is consideration, while intermediary facilitation for commission or fee is separately taxable. The service is classified under heading 997119 and taxed at 18%. For the earlier period, the lender bears IGST under forward charge, without further IGST where CGST, SGST, or UTGST was already paid. From 1 October 2019, the borrower bears IGST under reverse charge mechanism.

Monthly wages of Rs. 25,000 are prescribed as the wage ceiling for Chapter III of the Code on Social Security, 2020, governing the Provident Fund Scheme and EPF contributions. The ceiling takes effect upon publication in the Official Gazette. It supersedes the earlier wage-ceiling notification while preserving actions taken or omitted before the supersession.

Authorised officers for food-import controls are designated under the Food Safety and Standards Act and the FSS (Import) Regulations at notified points of entry. ICD Dhanakya, Jaipur is added as a food-import point of entry, with a Superintendent, Appraiser, Inspector or Examiner designated as authorised officer. The updated schedule identifies 172 points of entry across airports, inland container depots and SEZs, land customs stations and seaports. The earlier customs instruction is modified to reflect this addition.

Rupee appreciation against the US dollar followed lower crude oil prices, improved global risk sentiment, positive domestic equity markets, and softer US Treasury yields. Dollar index strength, geopolitical developments, and possible increases in oil supplies remained relevant to currency movements. Market commentary anticipated a slight positive rupee bias if crude oil prices continued to ease, while renewed geopolitical tensions could weaken risk sentiment. Net foreign institutional investment and a decline in foreign exchange reserves also formed part of the market context.