From Orepheus
IIFL Holdings announced that:Earlier on 11 June 2015, the Board decided to transfer 75% shareholding in erstwhile Insurance broking subsidiary namely India Infoline Insurance Brokers (IIBL) to Orpheus Trading (Orpheus), a company owned by promoters of IIFL Holdings in order to comply with the Insurance Laws (Amendment) Act, 2015 and Indian Insurance Companies (Foreign Investment) Rules, 2015 notified on 19 February 2015 and the transfer was effected on 18 June 2015. It was also then decided to acquire ownership of IIIBL back as and when the regulations permit.
Subsequently, the Govt. and IRDA amended the Rules/ Regulations vide Notification dated 03 July 2015 and IRDA Circular dated 19 October 2015 thereby restoring that the foreign portfolio investment held at the holding Company will not be considered for the purpose of calculating foreign holding in the Insurance Broking subsidiary.
In view of above and the IRDA approval received vide letter dated 30 September 2015 and the approval of the Audit Committee, the Committee of the Board at its meeting held on 08 December 2015 approved the acquisition of 325,000 equity shares of IIIBL, constituting 65% of the equity share capital of the said Company, back from Orpheus at fair value as certified by an independent Chartered Accountant. Pursuant to this acquisition, IIIBL will become a 90% non material subsidiary of the Company.
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