IRDAI cuts share transfer approval fee by 80% to Rs 10 lakh from Rs 50 lakh

The insurance regulator IRDAI has cut the fee for share transfer approvals by 80%. Companies earlier had to pay up to Rs 50 lakh for this approval. The fee now stands at up to Rs 10 lakh.

IRDAI issued a master circular on November 2, 2026. It states that the processing fee for share transfer approval has been reduced from Rs 50 lakh to up to Rs 10 lakh. This means companies will now pay Rs 40 lakh less.

However, companies that had already paid the fee before the new rules came into force will not get that amount back. Some older NOC applications have been exempted from the fee.

The circular also brings new guidelines on insurers' IPOs, the allotment of shares to employees and corporate mergers.

IRDAI has also set conditions for insurers preparing to list on the stock market. Such companies will have to disclose their shareholding both before and after the IPO. Details of shareholders holding more than 1% of the company's paid-up equity must also be given separately.

The company will also have to state the reason for bringing the IPO and its size. Details of fresh issue of shares and of the sale of shares by existing shareholders, known as an offer for sale, will have to be given separately.

Companies offer employees the chance to buy shares under ESOPs. IRDAI has tightened its oversight of these rules. IRDAI approval will be needed if shares are being issued through a trust set up for employees, or if the company's directors have bought a large number of shares.

Overall, the fee cut brings relief to insurers, but the conditions for disclosure and approval in IPO and ESOP matters have become stricter than before.