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CS Professional · IFSCA - Regulations, Listing and Compliances · Insurance and Reinsurance

Meridian Global Insurance, a foreign insurer, sets up an IFSC Insurance Office in GIFT City. Which activity is consistent with the IFSC framework?

An IFSC Insurance Office may underwrite direct insurance and reinsurance in permitted foreign currency, chiefly for non-residents and eligible IFSC clients. It cannot freely sell domestic rupee policies to residents, take retail deposits or run domestic share issues, as those lie outside the IFSC regime.

  1. ASelling domestic motor policies to Indian residents in rupees without any restriction
  2. BUnderwriting direct insurance and reinsurance business in permitted foreign currency, mainly for non-residents and entities as the IFSC rules allowCorrect
  3. CAccepting retail deposits from Indian residents
  4. DIssuing equity shares to the public on domestic stock exchanges

Explanation

IFSC insurance business is conducted in specified foreign currency and is aimed chiefly at non-resident and IFSC-based clients and reinsurance. Domestic rupee retail business, deposit-taking and domestic listing fall outside this framework.

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