Transfer of Shares of Insurance Companies


Particulars Transfer of shares of more than 1% and upto 5% of paid up share capital Transfer of shares of more than 5% of paid-up share capital
Acquisition Acquirer to provide “Fit and Proper” declaration to the insurance company. Proposal to acquire more than 5% will require prior IRDAI approval (i.e. the insurance regulator). Application to be made by insurance company.Transferor to seek prior approval of IRDAI.
Transfer Transferor to immediately inform the insurance company on execution of transaction. Transferor to ensure compliance. Transferor to seek prior approval of IRDAI. (Share transfer by transferor to cumulatively include transfer by relatives,associated enterprises, etc.). Application to be made by insurance company.
Implications on violation/ non-compliance IRDAI shall take appropriate regulatory action. Any non-compliance observed by the insurance company regarding transfer of shares beyong stipulated treshhold without prior approval will result in the following: 1.Transferee shall have no voting rights in meetings. 2.Disposal of excess shareholding beyong the stipulated limits. 3.Appropriate regulatory action
Determinatiuon of quantum Cumulative transfers made/ proposed to me made during the financial year to be considered for determining the subsequent steps of compliances.