SC: Appeal U/S 374 CrPC/415 BNSS is Not Maintainable Against Sessions Court's Reversal of Acquittal  ||  SC Asked the Centre to Promote Awareness About the Consequences of Driving With an Expired Licence  ||  SC Explains How a Deceased Christian Wife's Property Devolves under the Indian Succession Act  ||  Supreme Court: Reach Stacker isn't a Motor Vehicle; MACT Claim Not Maintainable  ||  Supreme Court: Lift Makers, Operators and Owners Share Responsibility for User Safety  ||  Patna HC: Pressure to Sign Divorce and Child Custody does not Amount to Cruelty  ||  Bombay HC: Externment under the Police Act Requires Satisfaction About a Gang's Activities  ||  Bombay HC: False Travel Distance Claim Alone Doesn't Constitute Misappropriation  ||  J&K&L High Court: Interest on Delayed Gratuity is Not a Mandatory Pre-Deposit For an Appeal  ||  Meghalaya HC: Meritorious Candidate Cannot Be Denied Admission For a Two-Minute Delay    

Government notifies amendment in FEMA to enable increase in FDI limit in insurance sector to 74% - (21 Aug 2021)

Insurance

The government has notified Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2021 (Rules, 2021) amending the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 to hike Foreign Direct Investment (FDI) limit in the insurance sector to 74 per cent.

The “Sectoral Cap” as provided in Rules, 2019 for Insurance Company, Insurance Brokers, Third Party Administrators, Surveyors and Loss Assessors and Other Insurance Intermediaries appointed under the provisions of Insurance Regulatory and Development Authority Act, 1999 has been increased from existing 49% to & 74%.

The notification said that “Applications for foreign direct investment in private banks having joint venture or subsidiary in insurance sector may be addressed to the Reserve Bank for consideration in consultation with the Insurance Regulatory and Development Authority of India (IRDAI), in order to ensure that the limit of foreign investment applicable for the insurance sector as specified in serial number F. 8.1 and F. 8.2 is not breached.”

The Rules, 2021 also requires that the insurance companies must have 50% of their directors as independent directors unless the chairperson of its board is herself or himself. In that case, at least one-third of its board should have independent directors. Foreign-owned insurance companies are also mandated to have the majority of their directors and key management persons as resident Indians.

Tags : FDI   INSURANCE SECTOR  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved