Transfer of shares in insurers that leads to shareholding change not allowed: IRDAI

Insurance Regulatory and Development Authority of India (IRDAI) today in its transfer of equity shares of insurance companies said that no registration of transfer of shares or issue of share capital can be made which would result in the shareholding change Free Stock Share Tips

The regulator said that, where, after the transfer, the total paid-up holding of the transferee in the share of insurance company is likely to exceed 5 per cent of its paid-up capital, this will not be approved.

IRDAI said that no such transfer can be made where the nominal value of the shares intended to be transferred by individual, group under same management exceeds one per cent of the paid-up equity capital of the insurance company Financial Astrology Trading Tips

The regulator said that they would conduct their own due diligence for approval of such a transfer. Further, it said that may also prescribe conditions such as minimum lock-in period and infusion of additional capital to maintain solvency.

“When then one or more investors in an insurance company, no investor shall hold shares exceeding 10 per cent of the paid-up equity share capital of the company,” said IRDAI on holdings by Indian investors. It added that all such investors jointly cannot hold more than 25 per cent of paid-up equity share capital of the insurance company Intraday Trading Tips