Section 13 in Insurance Regulatory and Development Authority of India (Third Party Administrators - Health Services) Regulations, 2016
13. Transfer of shares or ownership.
(1)A TPA shall seek prior approval of the Authority for any change in the shareholding exceeding 5% of its paid-up equity share capital, whether by way of transfer of existing shares or by way of fresh issue of shares to either new or existing shareholders.(2)For this purpose, the TPA may make such application and furnish such documents to the Authority for seeking approval in such form as may be specified by the Authority.(3)Every TPA shall file a return on the status of the shareholding pattern or ownership of the TPA in such form and within such time as may be specified by the Authority.(4)Every TPA shall, within thirty days of any change in shareholding, inform the Authority indicating therein the details of extant shareholding pattern in such form as may be specified by the Authority.(5)Where there is a transmission of shares by operation of law, the Authority reserves the right to apply fit and proper criteria and if so warranted and direct the TPA to divest the stake within such period as may be stipulated by the Authority for reasons recorded and communicated in writing :Provided that the Authority shall give an opportunity of being heard to the TPA before issuing such directions to the TPA.
