Section 2 in Indian Insurance Companies (Foreign Investment) Rules, 2015
2. Definitions.
- In these rules, unless the context otherwise requires, -(a)"Act" means the Insurance Act, 1938 (4 of 1938);(b)"Authority" means the Insurance Regulatory and Development Authority of India established under sub-section (1) of Section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);(c)"Control" shall have the same meaning assigned to it in the explanation to clause (b) of sub-section (7A) of Section 2 of the Insurance Act, 1938 (4 of 1938);(d)"equity share capital" shall have the same meaning assigned to it in section 43 of the Companies Act, 2013 (18 of 2013);(e)"FIPB" means the Foreign Investment Promotion Board as described in the Foreign Direct Investment Policy of the Government of India;(f)"Foreign Direct Investment" (FDI) means and includes investment by non-resident entities/persons resident outside India and other eligible entities in the equity shares of an Indian Insurance Company under clause (i) of sub-regulation (1) of regulation 5 of the Foreign Exchange Management (Transfer or issue of Security by a Person Resident Outside India) Regulations, 2000 (hereinafter referred to as FEMA Regulations 2000);Provided that for the purpose of these rules, Foreign Direct Investment shall include investment by Foreign Venture Capital Investors (FVCI) as permissible under Regulation 6 of FEMA Regulations 2000;(g)"Foreign Investors" for the purpose of these rules means all eligible non-resident entities or persons resident outside India investing in the equity share of an Indian Insurance Company, as permitted to do so through the Foreign Direct Investment and Foreign Portfolio Investment windows under FEMA Regulations 2000 as described in these rules;(h)"Foreign Portfolio Investment" means and includes investments in the equity share of an Indian Insurance company by Foreign Institutional Investors, Foreign Portfolio Investors, Non Resident Indians, Qualified Foreign Investors and other eligible portfolio investor entities or persons in accordance with provisions contained in sub-regulations (2), (2A), (3) and (8) of regulation 5 of FEMA Regulations, 2000.(i)"Indian Insurance Company" shall have the same meaning assigned to it in sub-section (7A) of section 2 of the Insurance Act, 1938 (4 of 1938);(j)"Indian Company" shall have the same meaning assigned to the term "Company" in sub-section (20) of Section 2 of the Companies Act 2013 (18 of 2013);(k)"Indian Control of an Indian Insurance Company" means Control of such Indian Insurance Company by resident Indian citizens or Indian companies, which are owned and controlled by resident Indian citizens;(l)"Indian Ownership" of an Indian Insurance Company means more than 50 per cent of the equity capital in it is beneficially owned by resident Indian citizens or Indian companies, which are owned and controlled by resident Indian citizens;[Provided that the manner of computation of foreign holding of such Indian promoter or Indian Investor Company shall be in accordance with clause (p) of rule 2.] [Inserted by Notification No. G.S.R. 534(E), dated 3.7.2015 (w.e.f. 19.2.2015).](la)[ "intermediary or insurance intermediary" shall have the meaning assigned to it in clause (f) of sub-section (1) of section 2 of the Insurance Regulatory and Development Authority Act, 1999;] [Inserted by Notification No. G.S.R. 619(E), dated 2.9.2019 (w.e.f. 19.2.2015).](m)"Non-resident Entity" shall have the meaning assigned to the term "Person resident outside India" in clause (w) of Section 2 of Foreign Exchange Management Act, 1999 (42 of 1999);(n)"Public Financial Institution" shall have the same meaning assigned to it in sub-section (72) of Section 2 of the Companies Act, 2013 (18 of 2013);(o)"Resident Indian Citizen" shall have the same meaning assigned to it in the FDI Policy 2014;(p)"Total Foreign Investment" in an Indian Insurance Company would be the sum total of direct and indirect foreign investment by Foreign Investors in such company, calculated in accordance with the Insurance Regulatory and Development Authority (Registration of Companies) Regulations 2000 read with Para 4.1.4 of the Consolidated FDI policy of the Government of India.(q)All other words and expressions used in these rules but not defined, and defined in the Act and Rules, Regulations made there under shall have the same meanings respectively assigned to them.Quantum of Foreign Direct Investment
