The Life Insurance Corporation General Regulations, 2021

Jul 23, 2021 | by Avantis RegTech Legal Research Team

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Commercial Compliance

The Life Insurance Corporation on July 22, 2021 has issued the Life Insurance Corporation General Regulations, 2021

The Important provisions of the regulation are as followed:

• Rule 4. Kinds and nature of share capital.—The share capital of the Corporation shall be of such kinds as are provided for in respect of a company in section 43 of the Companies Act in so far as they are not inconsistent with the provisions of the Act and the rules made there under: 

Provided that the provisions of sub-clause (ii) of clause (a) of the said section shall not apply in respect of the share capital of the Corporation. 

• Rule 6. Manner of issue of securities.—(1) The Corporation may issue securities either in physical form or in dematerialised form in accordance with the provisions of the Depositories Act and the Depositories and Participants Regulations. 

(2) Where the Corporation issues any securities in physical form, the issuance of such securities shall be in accordance with the requirements as the Board may specify in this behalf, including as to the authority for issuance of security, its form, the manner of signing of the certificate on behalf of the Corporation, printing and custody of blank certificates and process for issuance of duplicate certificate. 

• Rule 11.Transfer or transmission or transposition of securities.—(1) For carrying out activities in relation to transfer of securities, the Corporation shall appoint a share transfer agent or manage the transfer of securities’ facility in-house: 

Provided that in the case of in-house securities transfer facility, as and when the total number of holders of securities of the Corporation exceeds one lakh, the Corporation shall appoint a person, who is registered with the Securities and Exchange Board of India, as the registrar to an issue and share transfer agent of the Corporation. 

• Rule 12. Manner of keeping and maintaining registers.—The Corporation shall maintain the registers referred to in sub- section (1) of section 5B in respect of its members in Form ‘C’ and in respect of debenture holders or security holders in Form ‘D’, in like manner as is provided for such security holders of a company in rules made under section 88 of the Companies Act with regard to management and administration of companies, including in respect of the index of names to be included and authentication of entries in such registers, and the closure, inspection and supply of copies thereof: 

• Rule 14. Manner and form in which contracts binding on the Corporation may be executed.—(1) Contracts made on behalf of the Corporation shall be made in writing, signed by any person acting under its authority, express or implied, and may in the same manner be varied or discharged. 

(2) All contracts made according to the provisions of this regulation shall be valid and binding on the Corporation. 

• Rule 15. Accounts, receipts and documents of the Corporation by whom to be signed.—The whole-time directors, Company Secretary, and the head of the finance function of the Corporation as the Board may authorise in this behalf, and such other officers of the Corporation as the Chief Executive may authorise in this behalf, may, to such extent and subject to such limitations, if any, as may be specified or imposed in so authorising, for and on behalf of the Corporation,— 

(a)  endorse and transfer promissory notes, stock-receipts, stocks, debentures, shares, securities and documents of title to goods, standing or held in the name of the Corporation or held by it; 

(b)  draw, accept and endorse bills of exchange and other instruments in the current and authorised business of   the Corporation; 

(c)  issue insurance policies; and 

(d)  signal accounts, receipts and documents connected with the a foresaid. 

• Rule 16. Plaints etc., by whom to be signed.—Plaints, written statements, rejoinders, complaints, petitions, applications, affidavits, vakalatnamas and all other documents connected with legal proceedings may be signed, verified and presented before any court, tribunal or authority on behalf of the Corporation by any officer empowered by or under regulation 15. 

• Rule 17. Use of electronic records and electronic signature.—For the purposes of these regulations, any requirement of— 

(a) making, varying or discharging a contract, or making, varying or cancelling a nomination, or giving of notice, or maintaining a register, or executing an instrument of transfer or other document shall be satisfied if the same is made, varied or discharged, or maintained or given or executed, as the case may be, in the form of an electronic record as defined in the Information Technology Act, 2000 (21 of 2000); 

(b) a person signing a contract, a form for nomination or for the variation or cancellation thereof, register, instrument or transfer or document shall be satisfied if he affixes thereon his electronic signature as defined in the Information Technology Act, 2000. 

 [Notification No. F. No.I-13011/03/2021-Ins.I]

 


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