Exposure Draft

Ref. No:                                                                                                          Date: _________

EXPOSURE DRAFT - INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (OTHER FORMS OF CAPITAL) REGULATIONS, 2022

1.    The Authority is in receipt of requests to review the Regulations from the stakeholders. Therefore, the current regulations on issuance of Other Forms of Capital (OFC) by insurers have been reviewed. Some of the key changes being proposed in the regulations are: -

·         Discontinuation of the prior approval of Authority for raising resources through issue of OFC;

·         Discontinuation of the prior approval for exercising call option on existing OFC, subject to conditions;

·         Revision of the limits up to which OFC resources can be raised by insurers;

·         Boards of insurers to be responsible for ensuring compliance with the Regulations; and

·         Rationalization of the other compliance requirements.

2.    The exposure draft of IRDAI (Other Forms of Capital) Regulations, 2022, is attached as Annexure – A.

3.    All the stakeholders are requested to forward their comments / suggestions, if any, on the proposed regulations in the attached format (Annexure- B) on or before 5:00 PM on 23rd August, 2022 to finance-life@irdai.gov.in with a copy to shardul@irdai.gov.in