Govt draft norms to ease compliance for foreign investment in insurance

The draft norms for foreign investment in insurance propose easing compliance by scrapping residency requirements for directors and KMPs while retaining key leadership conditions

The government’s draft norms for the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2015, are expected to ease compliance for foreign investment in the sector and give comfort to global players, according to experts.

 

The norms, put out last week, propose to omit the clause that requires a majority of directors and key management persons (KMP) to be resident Indian citizens in companies that have significant foreign investment.

 

This, according to experts, is expected to ease the compliance burden for companies. 

 

However, the norms have retained the clause that one among the chairperson, managing director, and chief executive officer of