Lok Sabha Question No. 180 (STARRED), answered on 2022-03-14
Subject: Appointment of IRDAI Chairman
Ministry: FINANCE
Asked by: Manish Tewari

## THE FINANCE MINISTER

(SMT. NIRMALA SITHARAMAN)

- (a) to (e): A statement is laid on the Table of the House.

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## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA STARRED QUESTION NO- *180

ANSWERED ON- 14.3.2022/ PHALGUNA 23, 1943 (SAKA)

## Appointment of IRDAI Chairman

## *180. SHRI MANISH TEWARI:

Will the Minister of FINANCE be pleased to state:

- (a) whether it is a fact that the post of the Chairman of the Insurance Regulatory and Development  Authority  of  India  (IRDAI)  has  been  lying  vacant  for  the  last  eight months and if so, the reasons therefor;
- (b) whether the Peoples' Commission on Public Sector and Public Services has urged the Union  Cabinet  Secretary  to  advise  the  Cabinet  not  to  divest  its  Stakes  in  the  Life Insurance Corporation (LIC) of India and if so, the details thereof;
- (c) whether the Government is aware that it is pursuing the daft IPO proposal while the regulatory body remains headless;
- (d) whether the Commission's letter points out that the Government has been delaying the appointment of IRDAI Chairman to rush LIC IPO and if so, the details thereof; and
- (e) the time by when the Government plans on appointing the Chairman of the IRDAI?

## ANSWER

## Statement as referred to in reply to Part (a) to (e) of Lok Sabha Starred Question no. *180 for answer on 14 th  March, 2022 regarding ' Appointment of IRDAI Chairman ' by SHRI MANISH TEWARI , Hon'ble Member of Parliament

(a) to (e): Appointment has been notified on 11.3.2022 to fill up the vacancy that had arisen in the office of the Chairperson, Insurance Regulatory and Development Authority of India upon completion of the term of the last incumbent.

An email  dated  14.2.2022  has  been  received  in  the  Cabinet  Secretariat  from  the  People's Commission on Public Sector and Public Services, expressing apprehension that regulatory oversight has been weakened to facilitate disinvestment in LIC and advising that no action be pursued on LIC disinvestment till a person heads the Authority, on the ground that a headless Authority will be considering the draft Initial Public Offer (IPO) proposal. In this regard,  it  is  pertinent  that  LIC,  in  accordance  with  the  provisions  of  regulation  25  of  the Securities  and  Exchange  Board  of  India  (Issue  of  Capital  and  Disclosure  Requirements) Regulations,  2018,  filed  the  draft  offer  document  for  the  IPO  with  the  Securities  and Exchange Board of India (SEBI) on 12.2.2022 and there is no requirement under the said regulations or otherwise for the same to be considered by the Authority.

It is further informed that under the Insurance Regulatory and Development Authority Act, 1999, the powers and functions of the Authority are vested collectively in the collective body of its Members. The Act and the regulations made thereunder also provide that the seniormost full time Member of the Authority shall fix the date, time and place of its meeting and approve items of agenda therefor, that any other Member chosen by the Members present shall preside at its meetings in the absence of the Chairperson, and that vacancies etc. in the Authority shall not invalidate its acts or proceedings. Thus, even when there is a vacancy in the  office  of  the  Chairperson,  the  Authority  is  in  position  to  exercise  its  powers  and discharge its functions in accordance with applicable law.

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