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