Govt allows up to 26% FDI in insurance via automatic route

Insurance CoThe government has allowed upto 26 per cent FDI in insurance companies through automatic route, as it notified rules to increase foreign direct investment ceiling in the sector to 49 per cent.

“Foreign direct investment (FDI) proposals up to 26 per cent of the total paid-up equity of Indian insurance company shall be allowed via automatic route, and FDI proposals which take the total foreign investment above 26 per cent and upto the cap of 49 per cent shall require FIPB approval,” Finance Ministry said in a statement.

In December last year, the government had issued ordinance to increase the FDI ceiling in the insurance sector to 49 per cent from earlier 26 per cent.

According to the rules, foreign equity investment cap of 49 per cent is applicable to all Indian insurance companies.

"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔

Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.