Parliament Parliament of India
Insurance (Amendment) Bill raises foreign stake in insurers to 74%
This Bill amends the Insurance Act, 1938 to increase the maximum limit of foreign investment in Indian insurance companies from 49% to 74% of their paid-up equity capital.
The stated objective is to supplement domestic long-term capital, technology, and skills to enhance insurance penetration and social protection.
Who it concerns: Indian insurance companies (insurers) and foreign investors (including portfolio investors) holding equity shares in these companies.
What the bill does
- Raises the aggregate holdings of equity shares by foreign investors in an Indian insurance company from 49% to 74% of paid-up equity capital.
- Omits the Explanation to sub-section (7) of section 27, which previously defined 'control' for insurers with one-third foreign ownership.
- Amends section 114 to allow the Central Government to prescribe rules regarding the conditions and manner of foreign investment under the new 74% limit.
Also in the document
- The Bill was introduced in the Rajya Sabha on March 12, 2021.
- It delegates power to the Central Government to make rules for the conditions and manner of foreign investment, citing procedural and administrative details.
Where this bill is now: Became law (Act)
How this was written
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The original document
Parliament of India — Bills (Lok Sabha & Rajya Sabha)
Bill / law · Ref. XX · 18 Mar 2021
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