Irdai refuses any say to foreign partners

News:

• Foreign Partners in insurance companies in India will have no final say on decisions pertaining to strategy and produ-cts, as the Insurance Regulatory and Development Authority of India (Irdai) has decided not to give them any additional rights when their they increase their stake from 26 per cent to 49 per cent.
• While the regulator might not bring out guidelines on Indian management and control, it would review individual agreements in detail when foreign insurers seek approval to increase stake from 26 per cent to 49 per cent.
• A foreign insurer increasing its stake from 26 per cent to 49 per cent does not mean it would have significantly higher rights than what it has currently.
• No top executive appointment or major company decision can be taken by the foreign partner, even though it will have a larger share of the company capital than what it does currently.

Source: BS