Norms For Independent Directors Amended; Rules For FDI In Insurance Notified: ELP

ELP Update

Key changes have been introduced by the Ministry of Finance, MCA and SEBI:

With the view to boost foreign investments in the insurance sector, MoF has-

• Notified changes to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules), thereby increasing the sectoral cap of foreign investment in the insurance company to 74% under the automatic route.

In relation to independent directors, Ministry of Corporate Affairs has introduced the following amendments-

• Requirement of an annual report on persons included as ID under the companies (creation and maintenance of databank of independent directors) Rules, 2019.

• Relaxation in the requirement for IDs to pass the online proficiency self-assessment test under the Companies (Appointment and Qualification of Directors) Rules, 2014 - Advocates/CA/CS/Cost Accountant with 10 years’ experience exempted.

With a view to further streamline the regulatory framework and ease certain norms, Securities and Exchange Board of India has introduced number of changes including the following-

• Notified new SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021

• Lock-in period relaxed in case of public offers, boost to alternative investment funds/venture capital funds/foreign venture capital investments, change in definition of promoter group where promoter is a body corporate.

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