|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
|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.
|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.