IRDAI has issued guidelines for the acquisition of shares in listed insurance companies under that the acquirer will be required to adhere to the fit and proper criteria and seek regulators approval for owning voting rights beyond 5 percent.

According to the IRDAI (Listed Indian Insurance Companies) Guidelines, 2016, “Every person who intends to make any transfer or any arrangement or agreement to transfer 1 percent or more but less than 5 percent of the paid up equity share capital of the concerned insurer, may do so, subject to compliance of Fit and Proper criteria.”

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