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.
Indian insurance companies (insurers) and foreign investors (including portfolio investors) holding equity shares in these companies.
- 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.
Written from the document by AI, and checked against it. The original below is authoritative.
Where this law is now — Became law (Act)
The original document
Bill passed rs
2021-03-18
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Document details
| Official title | THE INSURANCE (AMENDMENT) BILL, 2021 |
| Source body | Parliament of India — Bills (Lok Sabha & Rajya Sabha) |
| Reference number | XX |
| Status | closed (bill) |
| Year | 2021 |
| Closing date | — |
| Documents | 3 |