Date:09/12/2005 URL: http://www.thehindubusinessline.com/2005/12/09/stories/2005120903610600.htm

Back IRDA authorised to permit foreign firms set up liaison offices

Our Bureau

Hyderabad , Dec. 8

THE Insurance Regulatory and Development Authority (IRDA) has been authorised to permit insurance companies registered outside India to set up liaison offices in the country.

As per the existing procedures, the Reserve Bank of India (RBI) is entitled to grant such permissions. The guidelines have now been revised in consultation with the Government, the IRDA Chairman, Mr C.S. Rao, said in a notification here.According to the IRDA, the `Liaison Office' would mean a place of business to act as a channel of communication between the principal place of business or head office, by whatever name called, and entities in India but which does not undertake any commercial/ trading/ industrial activity, directly or indirectly, and maintains itself out of inward remittances received from abroad through normal banking channel.

The notification has asked persons desirous of opening liaison offices to apply to the IRDA. The applicant company should comply with the terms and conditions of the general permission granted by the RBI under the Foreign Exchange Management Act, 1999 and any other law in force.

Further, the permission for opening a liaison office by an insurance company registered outside India is subject to the terms and conditions as might be additionally stipulated by the IRDA from time to time, Mr Rao said.