The 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.
