Government raises FDI cap in insurance sector to 49%

NEW DELHI: The government raised FDI cap in insurance to 49% from 26% through a notification issued by the DIPP. The limit is composite in nature as it includes foreign investment in forms of foreign portfolio investment, foreign institutional investment, qualified foreign investment, foreign venture capital investment and non-resident investment.

" Government has reviewed foreign investment policy on the insurance sector. Accordingly, consolidated FDI policy, effective from April 17, 2014 is amended," DIPP said in press note.