The Division for Promotion of Trade and Inside Commerce (DPIIT) on Tuesday notified the federal government’s choice to permit 100% overseas direct funding (FDI) in insurance coverage intermediaries.
Middleman companies embody insurance coverage brokers, re-insurance brokers, insurance coverage consultants, company brokers, third social gathering directors, surveyors and loss assessors.
The FDI coverage earlier allowed 49% overseas funding within the insurance coverage sector, which incorporates insurance coverage intermediaries.
In its press notice, the DPIIT mentioned 100% FDI is allowed in insurance coverage intermediaries below computerized approval route.
It mentioned that insurance coverage middleman that has majority share holding of overseas buyers shall undertake measures together with incorporation as a restricted firm below the provisions of the Corporations Act 2013; at the least one from among the many chairman of the board of administrators or the CEO or principal officer or MD of the corporate shall be a resident Indian citizen, shall take permission of the IRDA for repatriating dividend, and shall not make funds to the overseas group or promoter or affiliate entities past what is critical or permitted.
Representations have been made to the federal government that these middleman companies must be handled at par with different monetary companies intermediaries, the place 100 per cent overseas funding is permitted.