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| Exchange Disseminated Time | IIFL Holdings Ltd has informed BSE that the Board noted the following key elements of amended Insurance Laws 2015 and Government notifications, that are pertinent for IIFL's Insurance Broking business:
1. Foreign Portfolio investors (FPIs / Flls) shareholding is considered as foreign shareholding which was not the case prior to the amendment;
2. Foreign shareholding up to 26% is under automatic approval, but increase up to 49% requires FIPB approval;
IIFL Holding Ltd's foreign shareholding as per the amended laws, relevant for Insurance Broking was more than 50% as on March 31, 2015. In order to be immediately compliant with the Amended Insurance Laws 2015, the Board has approved transfer of 375,000 equity shares of India Infoline insurance Brokers Ltd (IIIBL), constituting 75% of Its equity share capital, from the Company to Orpheus Trading Pvt Ltd, a company owned by promoters of IIFL Holdings Ltd, who are Indian residents and citizens, subject to approval by IRDA, at fair value as certified by an independent Chartered Accountant.
The Board noted that above restructuring will make the shareholding of IIIBL compliant with the Amended Insurance Laws 2015 and Government notifications, for automatic approval of foreign shareholding. IIFL Holdings Ltd plans to acquire ownership of IIIBL back when regulations permit. |
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