The
Insurance Regulatory and Development Authority (IRDA) has informed that Public
Sector Banks have tie-ups with insurance companies to do business.
IRDA
has further informed that the transfer of shares between shareholders of
insurance companies is governed by the provisions of Section 6A 4(b) of the
Insurance Act, 1938 and the guidelines issued by the Authority, viz. Circular
No. IRDA/F&A/CIR/ DRSH/183/08/2011 dated August 11, 2011. However, the
valuation of shares for inter se transfer between the resident shareholders are
governed by the extant Company Law provisions and IRDA has not prescribed any
guidelines for valuation of shares for such transfer between two domestic
resident companies. Transfer of shares by domestic companies to foreign
promoters is guided by compliance with RBI Pricing Guidelines. The Authority
monitors the extent of share holding by domestic and foreign promoters in
insurance companies for compliance with the FDI guidelines.
This
was stated by Minister of State for Finance, Shri Namo Narain Meena in written
reply to a question in Lok Sabha today.
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