The Life Insurance Corporation of India has notified with effect from July 22, 2021, the Life Insurance Corporation General Regulations, 2021.
The significant provisions of the regulations include:
- 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.
- The Corporation shall appoint a registrar to an issue or a share transfer agent and shall enter into a tripartite agreement with the registrar to an issue or the share transfer agent, as the case may be, and a depository, in respect of the securities to be issued in dematerialised form.
- The Corporation shall issue equity shares to the Central Government in consideration for the paid-up equity capital provided by the Central Government to the Corporation.
- Members may make nomination in the manner provided for nomination by the security holders of a company in rules made under section 72 of the Companies Act with regard to share capital and debentures.
- The Corporation may, with the approval of the Board, make calls upon a member for further share capital in respect of any amount remaining unpaid on shares held by him and also accept from him the whole or part of such amount even if the amount has not been called up.
- 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.
- The Corporation shall pay dividend in proportion to the amount paid-up on each share.
- 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. All contracts made under this regulation shall be valid and binding on the Corporation.
- Electronic records: 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 by LIC is valid if it is in form of an electronic record as defined in the Information Technology Act, 2000.
- E-signature: 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.
*Tanvi Singh, Editorial Assistant has reported this brief.