X is an individual, non-Indian, non-citizen and non-resident of India and controls a group of organizations engaged in the financial sector located outside India. He intends to set up a life insurance company in India an

(ii) The Act earlier required that 'the capital of an insurance company shall consist of only Equity Share Capital and no other forms of capital are allowed. However as per amendments made in 2015, insurance companies are allowed to issue total quantum of preference shares and debentures not exceeding 25% of the equity share capital. Further, there is a progressive decrease in the proportion in which the instruments are included as part of the capital (for the purposes of calculation of "Available Solvency Margins") for the final five years prior to maturity of such instruments. Here the proposal is to divide the total capital into equity and preference shares in equal measure, i.e., 50% of equity and 50% of preference share capital. As per the Act this is not allowed and hence the proposed company is required to make necessary amendments on the proposed capital structure to comply with total cap of 25% of equity capital for total of preference shares and debentures. The company must have paid up equity capital of ₹100 crores.