Section 8 in Insurance Regulatory and Development Authority of India (Insurance Web Aggregators) Regulations, 2017
8. Requirements of Capital and net-worth.
- (a) Capital Requirementsi. An applicant seeking to become an Insurance Web Aggregator under these regulations shall have a minimum paid up capital/ contribution of rupees twenty five lakhs.ii. The capital of the Insurance Web Aggregator shall be issued and subscribed in the form of Equity Shares where the Insurance Web Aggregator is a company registered under Companies Act, 2013.iii. The contribution of partners in case of LLP shall be only in cash[***] [Omitted 'iv. The applicant shall also comply with the Rule, Regulation, Circular, Guidelines, etc. issued in respect of Indian owned and controlled' by Notification No. F. No. IRDAI/Reg/13/164/2019, dated 30.10.2019.].v. The shares of the Insurance Web Aggregator held as capital shall not be pledged in any form or manner to secure credit or any other facility and shall at all times be unencumbered.(b)Manner of calculation of equity capital held by foreign investorsi. The aggregate holdings of equity shares or contribution of the Insurance Web Aggregator by foreign investors, including portfolio investors, shall not exceed [***] [Omitted 'forty-nine per cent of paid-up equity capital of Insurance Web Aggregator at any time or' by Notification No. F. No. IRDAI/Reg/13/164/2019, dated 30.10.2019.] such foreign investment limit as prescribed by the Central Government.ii. For the purposes of the Act and these Regulations, the calculation of the holding of equity shares by one or more Foreign Investors in the applicant company, shall be as per details given in Form AA (Manner of calculation of equity capital held by foreign investors) of Schedule XII.(c)Net-worth requirementsi. The net-worth of an Insurance Web Aggregator shall at no time during the period of certificate of registration period fall below 100% of the minimum capital requirements or contribution specified under sub-regulation (a)(i) above.Explanation. - For the purposes of these regulations, "net worth" shall have the meaning assigned to it in Companies Act 2013 and as amended from to time.ii. Every Insurance Web Aggregator shall review the status of the net-worth specified in sub-regulation (i) above, every half year as at 30th September, and 31stMarch every year and report non-compliance, if any, to the Authority within 15 days thereon and shall restore the requirements within 30 days thereafter and confirm compliance to the Authority.iii. In case the Insurance Web Aggregator is not able to maintain the minimum net-worth even after 30 days, then he shall immediately stop doing insurance related business/ activity.iv. The Insurance Web Aggregator shall submit to the Authority a net worth certificate duly certified by a Chartered Accountant every year after finalization of books of accounts.(d)Transfer of sharesi. The beneficial ownership and control of the shares or contribution shall totally and completely rest with the entity/individual approved by the Authority.ii. The process of transfer of shares of Web Aggregator shall be as given in Form AB (Transfer of shares) of Schedule XII of these regulations.
