"6. (7) No insurer not being an insurer as defined in sub clause (d) of clause (9) of section 2, carrying on the business of life insurance, general insurance, health insurance or re insurance in India or after the commencement of the 41 of 1999. Insurance Regulatory and Development Authority Act, 1999, shall be registered unless he has,— (/) a paid-up equity capital of rupees one hundred crore, in case of a person carrying on the business of life insurance or general insurance; or (//) a paid-up equity capital of rupees one hundred crore, in case of a person carrying on exclusively the business of health insurance; or (///) a paid-up equity capital of rupees two hundred crore, in case of a person carrying on exclusively the business as a re-insurer:
"Provided that the insurer, may enhance the paid up equity capital, as provided in this section in accordance with 18of2013. m e provisions of the Companies Act, 2013, the Securities 15 of 1992. Exchange Board of India Act, 1992 and the rules, regulations or directions issued thereunder or any other law for the time being in force:
Provided further that in determining the paid-up equity capital, any preliminary expenses incurred in the formation and registration of any insurer as may be specified by the regulations made under this Act, shall be excluded.".
(2) No insurer, as defined in sub-clause (d) of clause (9) of section 2, shall be registered unless he has net owned funds of not less than rupees five thousand crore.".
11. In section 6A of the Insurance Act,— (/) for sub-section (7), the following sub-section shall be Amendment of section 5.
Substitution of new section for section 6.
Requirement as to capital.
Amendment of section 6A.
10 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— substituted, namely:— "(7) No public company limited by shares having its registered office in India, shall carry on life insurance business or general insurance business or health insurance business or re-insurance business, unless it satisfies the following conditions, namely:— (/') that the capital of the company shall consist of equity shares each having a single face value and such other form of capital, as may be specified by the regulations;
(//) that the voting rights of shareholders are restricted to equity shares;
(///) that, except during any period not exceeding one year allowed by the company for payment of calls on shares, the paid-up amount is the same for all shares, whether existing or new:
Provided that the conditions specified in this sub section shall not apply to a public'company which has, before the commencement of the Insurance 47 of 1950. (Amendment) Act, 1950, issued any shares other than ordinary shares each of which has a single face value or any shares, the paid-up amount whereof is not the same for all of them for a period of three years from such commencement.";
" (//') in sub-section (2), after the words "paid-up amount of the", the word "equity" shall be inserted;
(Hi) for sub-section (4), the following sub-section shall be substituted, namely:— "(4) A public company as aforesaid which carries on life insurance business, general and health insurance business and re-insurance business—
(a) shall, in addition to the register of members maintained under the Companies Act, 2013, maintain a register of shares in which the name, occupation and address of the beneficial owner of each share shall be entered including any change of beneficial owner declared to it within fourteen days from the receipt of i SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 11 such declaration;
(b) shall not register any transfer of its shares—
(f) unless, in addition to compliance being made with the provisions of section 56 of the Companies 18 of 2013. ^ c t j 2013, the transferee furnishes a declaration in the prescribed form as to whether he proposes to hold the shares for his own benefit or as a nominee, whether jointly or severally, on behalf of others and in the latter case giving the name, occupation and address of the beneficial owner or owners, and the extent of the beneficial interest of each;
(») where, after the transfer, the total paid-up holding of the transferee in the shares of the company is likely to exceed five per cent, of its paid-up capital unless the previous approval of the Authority has been obtained to the transfer;
(Hi) where, the nominal value of the shares.
intended to be transferred by any individual, firm, group, constituents of a group, or body corporate under the same management, jointly or severally exceeds one per cent, of the paid-up equity capital of the insurer, unless the previous approval of the Authority has been obtained for the transfer.
Explanation.—For the purposes of this sub clause, the expressions "group" and "same management" shall have the meanings respectively 12 o f 2003- assigned to them in the Competition Act, 2002.".
(zv) sub-sections (3), ((5), (7), (8), (9) and (70) shall be omitted;
(v) in sub-section (77), the words, brackets and figures "except those of sub-sections (7), (8) and (9)" shall be omitted;
(vz) in sub-section (77), clause (//) shall be omitted; and
(vii) in the Explanation, in sub-clause (c) of clause (//), the words "managing agent" shall be omitted.
12. Section 6AA of the Insurance Act shall be omitted. Omission of section 6AA.
12 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
13. In section 6B of the Insurance Act,— Amendment of section 6B.
(i) in sub-section (/),-—
(a) for the words "life insurance business", the words "life or general or health insurance or re-insurance business" shall be substituted; and
(b) for the words "Central Government", the word "Authority" shall be substituted;
(ii) in sub-sections (2) and (3), for the words "High Court", the words "the Securities Appellate Tribunal" shall be substituted.".
(Hi) sub-section (4) shall be omitted.
14. Sections 6C, 7, 8 and 9 of the Insurance Act shall be Omission of omitted. sections 6C, 7, 8 and 9.
15. In section 10 of the Insurance Act,— Amendment of section 10.
(/') in sub-section (1), for the words "prescribed in this behalf, the words "specified by the regulations" shall be substituted;
(ii) in sub-section (2),—
(a) the words, brackets and figures, "after the expiry of six months from the commencement of the Insurance 6 of 1946 (Amendment) Act, 1946", shall be omitted;
(b) the words "under the law of the insurer's country" occurring at the end, shall be omitted.
(Hi) after sub-section (2A), the following sub-section shall be inserted, namely:— "(2AA) Where the insurer carries on the business of insurance, all receipts due in respect of each sub-clause of such insurance business shall be carried to and shall form a separate fund, the assets of which shall be kept separate and distinct from other assets of the insurer and every insurer shall submit to the Authority the necessary details of such funds as may be required by the Authority from time to time and such funds shall not be applied directly or indirectly save as expressly permitted under this Act or SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 13 regulations made thereunder.".