Insurance Bill raises foreign stake cap to 74% of paid-up equity

This Bill amends the Insurance Act, 1938 to raise the limit of foreign investment in Indian insurance companies from 49% to 74% of paid-up equity capital. It aims to supplement domestic capital, technology, and skills to enhance insurance penetration and social protection.

Indian insurance companies, foreign investors (including portfolio investors), and the Central Government.

• Raises the aggregate holdings of equity shares by foreign investors in an Indian insurance company to a maximum of 74% of paid-up equity capital.
• Foreign investment remains subject to conditions and manner prescribed by the Central Government.
• Omits the Explanation to sub-section (7) of section 27, which previously applied specific trust requirements to insurers with one-third foreign ownership.
• Amends section 114 to allow the Central Government to make rules regarding the conditions and manner of foreign investment.

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