The Central Government through notification dated the 19th August, 2021 the Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2021. The amendment provides that applications for foreign direct investment in private banks having joint venture or subsidiary in insurance sector may be addressed to the Reserve Bank for consideration in consultation with the Insurance Regulatory and Development Authority of India, in order to ensure that the limit of foreign investment applicable for the insurance sector is not breached.
It is also provided that in an Indian Insurance Company having foreign investment,-
(i) a majority of its directors;
(ii) a majority of its Key Management Persons; and
(iii) at least one among the Chairperson of its Board, its Managing Director and its Chief Executive Officer,
shall be Resident Indian Citizens.
It is further clarified that an Indian Insurance company having foreign investment shall comply with the provisions
under the Indian Insurance Companies (Foreign Investment) Rules, 2015.
