In exercise of the powers conferred by sub section 1 of Section 28 read with Section 12 and 13 of the International Financial Services Centres Authority Act

REGD. No. D. L.-33004/99 The Gazette of India CG-GJ-E-21102024-258104 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 822] NEW DELHI, THURSDAY, OCTOBER 17, 2024/ASVINA 25, 1946 INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY NOTIFICATION Gandhinagar, the 14th October, 2024 International Financial Services Centres Authority (Investment by International Financial Services Centre Insurance Office) (Amendment) Regulations, 2024 F. No. IFSCA/GN/2024/008.—In exercise of the powers conferred by sub-section (1) of Section 28 read with Section 12 and 13 of the International Financial Services Centres Authority Act, 2019, the International Financial Services Centres Authority hereby makes the following regulations to amend the International Financial Services Centres Authority (Investment by International Financial Services Centre Insurance Office) Regulations, 2022 namely:- 1. Short title and commencement:- (1) These regulations may be called the International Financial Services Centres Authority (Investment by International Financial Services Centre Insurance Office) (Amendment) Regulations, 2024; (2) They shall come into force from the date of their publication in the Official Gazette. 2. Sub-regulation (9) of regulation 5 shall be substituted as follows – “An IIO investing its retained premium in DTA in adherence with the condition specified under sub- clause (b) of clause (A) of sub-regulation (2) of regulation 5 of the IRDAI (Re-insurance) Regulation, 2018, shall invest only in accordance with regulation 9B of these regulations.” 3. Note:6 of Matrix-1 under regulation 9 shall be substituted by the following – "For Unit Linked Insurance Products (ULIP), the pattern of investments as specified in regulation 9A of these regulations shall be followed". 4. After regulation 9, following shall be inserted – "9A Unit Linked Insurance Products – (1) Without prejudice to sections 10 (2AA) and 27 of the Insurance Act, 1938 and any provisions of these regulations, every IIO shall invest and at all times keep invested its funds of unit linked business as per pattern of investment subscribed by the policy- holders, where the units are linked to categories of assets which are both marketable and readily realizable. (2) The following limits of exposure shall be applicable for investment of unit linked business assets in entities, group and industry at the level of individual segregated fund. Matrix 1A : Investment Asset Exposure Matrix to Equity, Group and Industry for investment of unit linked business assets +-----+--------------------------------------------+-------------------------------------------------------------+ | Sr. | Overall Exposure by an insurer | Maximum Investment by an insurer as a per centage of the | | No. | | total unit linked business assets | +=====+============================================+=============================================================+ | a) | A Single Entity (Investee) | 10 | +-----+--------------------------------------------+-------------------------------------------------------------+ | b) | Within the IIO's Own Group | 5 | +-----+--------------------------------------------+-------------------------------------------------------------+ | c) | To any other single Group | 15 | +-----+--------------------------------------------+-------------------------------------------------------------+ | d) | To a particular Industrial Sector | 15 | +-----+--------------------------------------------+-------------------------------------------------------------+ Provided that in case of investments in passively managed / index-based Mutual Funds and Exchange Traded Funds (ETFs), exposure norms mentioned at sr. no. (a), (c) and (d) above, shall apply only after – (i) three (3) years from the date of launch of individual segregated unit linked fund; or (ii) the Assets Under Management of an individual segregated unit linked fund becomes equal to or more than twenty-five (25) Million USD, whichever is earlier." 5. After regulation 9A, following shall be inserted – "9B Admissible pattern of investment – The investments by an IIO in DTA as per category specified in sub-regulation (2), clause (A) of Regulation 5 of the Insurance Regulatory and Development Authority of India (Re-insurance) Regulations, 2018 shall be in accordance with the following matrix: Matrix 1B: Investment Asset Exposure Pattern Matrix for certain IIOs +-----+--------------------------------------------------------------------------------+-----------------------------------+ | Sr. | Type of Investment Asset | Maximum Exposure Limits (per cent.) | | No. | | | +=====+================================================================================+===================================+ | 1 | Securities of Central Government of India | 10 | +-----+--------------------------------------------------------------------------------+-----------------------------------+ | 2 | Corporate Bonds | 15 | +-----+--------------------------------------------------------------------------------+-----------------------------------+ | 3 | SEBI approved Alternative Investment Funds (AIF) - Category 1 and 2 | 10 | +-----+--------------------------------------------------------------------------------+-----------------------------------+ | 4 | Immovable Property including Real Estate Investment Trusts (REITs) | 5 | +-----+--------------------------------------------------------------------------------+-----------------------------------+ | 5 | Infrastructure including Infrastructure Investment Trusts (InvIT) and instruments for financing Infrastructure Assets | 5 | +-----+--------------------------------------------------------------------------------+-----------------------------------+ | 6 | Money markets instruments for short period | 90 | +-----+--------------------------------------------------------------------------------+-----------------------------------+ | 7 | Investment in 'Equity', Preference Shares, Convertible Debentures | 25 | +-----+--------------------------------------------------------------------------------+-----------------------------------+ | 8 | Investment in Debt (incl. Commercial Papers) | 90 | +-----+--------------------------------------------------------------------------------+-----------------------------------+ Note 1: 'Invested' would mean 'Invested and kept invested'. Note 2: Notwithstanding the maximum exposure limits mentioned herein above, the extant limits as specified by the Reserve Bank of India or the Securities and Exchange Board India, as the case may be, shall prevail.” K. RAJARAMAN, Chairperson [ADVT.-III/4/Exty./591/2024-25] Note: The International Financial Services Centres Authority (Investment by International Financial Services Centre Insurance Office) Regulations, 2022 were published in the Gazette of India Extraordinary vide notification No. IFSCA/2022-23/GN/REG030 on 13th January, 2023 and first amendment to these regulations were published in the Gazette of India Extraordinary vide notification No. IFSCA/2023-24/GN/REG042 on 27th October, 2023. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.