SC Cancels Chhota Rajan's Bail in 2001 Jaya Shetty Murder Case  ||  NCLAT: Workmen Can Claim Dues Post-Layoff If They Worked After Corporate Debtor's Notice Issuance  ||  NCLAT: Debt Can be Proved Through Any Documentary Evidence, No Written Contract Needed.  ||  Madras HC: Railway Authorities Can't Deboard Valid-Ticket Passengers Heading to Protest  ||  Delhi HC: Women’s Entry into Army Corps Can’t be Restricted; Vacant Male Posts Must be Open to Women  ||  Delhi HC: Pressuring Husband to Cut Ties With His Family Amounts to Cruelty; Ground For Divorce  ||  Bombay HC: Magistrate Need Not Pass Preliminary Order U/S 145 CrOC If HC or SC Directs Inquiry  ||  Delhi HC Allows Woman to Terminate 22-Week Pregnancy from False Promise of Marriage  ||  Supreme Court: Reasons Omitted In an Order May be Considered In Specific Circumstances  ||  SC: Execution of Arbitral Award Cannot be Stalled Just Because Section 37 Appeal is Pending    

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 2025 - All Rights Reserved