DPIIT amends the Foreign Direct Investment Policy in Insurance Sector

Feb 28, 2020 | by Avantis RegTech Legal Research Team


Industry Specific Compliance

The Department for Promotion of Industry and Internal Trade (DPIIT) has reviewed the extant Foreign Direct Investment (FDI) policy on Insurance Sector and has made certain amendments in the Consolidated FDI Policy of 2017.

The amendments are as under:

Ø  Para 5.2.22 which specifies the sector or activity of Insurance alongwith the percentage of equity and entry route, of FDI Policy is amended, namely:

Sector / Activity

% of Equity / FDI cap

Entry Route

5.2.22.1

Insurance Company

49%

Automatic

5.2.22.2

Intermediaries or Insurance Intermediaries including insurance brokers, re-insurance brokers, insurance consultants, corporate agents, third party administrator, Surveyors and loss Assessors and such other entities, as may be notified by the Insurance Regulatory and Development Authority of India from time to time

100%

Automatic

Ø  Existing Para 5.2.22.2 will be renumbered as 5.2.22.3: Other Conditions.

The above decision will take into effect from the date of FEMA Notification.

[Press Note No. 1 (2020 Series)]


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