The Insurance Regulatory and Development Authority of India (IRDAI) is proposing to remove the requirement for prior approval for listing of shares of insurers on stock exchanges subject to compliance of specified conditions.

In an exposure draft of IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Indian Insurance Companies) Regulations, 2024, the insurance regulator proposed major changes including removal of requirement of prior-approval of the IRDAI for listing of shares of insurers on stock exchanges subject to compliance of specified conditions and provision for relaxation of lock-in period in case the insurer or the shareholder is in financial distress or to facilitate amalgamation of insurers or shareholders.

The proposed regulations also intend to provide more clarity on the capital structure of the applicants seeking new registration and applicability of requirement of prior- approval for transfer of shares.

The regulator has invited views of various stakeholders and the general public on the proposed changes which can be sent on or before 23rd February, 2024 to the regulator, according to a circular.

“As part of the comprehensive review of Regulations being undertaken by the IRDAI, to enhance the ease of doing business and also reduce compliance burden for stakeholders while also ensuring that interests of policyholders continue to be protected, Insurance Councils were asked to submit their recommendations,’‘ the regulator said. 

The proposed changes in the norms were recommended by the Regulations Review Committee (RRC), the regulator said. 

The IRDAI also plans to tweak norms pertaining to the corporate governance with an objective to provide a governance structure for insurers, responsibilities and functions of the Board and the management of insurers so that they can recognises and meet the expectations of all stakeholders, particularly of policyholders and ensure adoption of sound and prudent principles and practices for the governance.