The Ministry of Finance (MoF) on December 30, 2025, issued the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025 to further amend the Indian Insurance Companies (Foreign Investment) Rules, 2015.
The following amendments have been stated:
• In the Indian Insurance Companies (Foreign Investment) Rules, 2015, in rule 2, in sub-rule (1), —
(i) for clause (f), the following clause shall be substituted, namely: —
(f) “Foreign Direct Investment” (FDI) means the investment by non-resident entities or persons resident outside India and other eligible entities in the equity shares of an Indian Insurance Company under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019: Provided that for the purposes of these rules, Foreign Direct Investment shall include investment by Foreign Venture Capital Investors (FVCI) as permissible under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019;‟;
(ii) in clause (g), for the letters, word and figures “FEMA Regulation 2000”, the words, brackets and figures “the Foreign Exchange Management (Non-debt Instruments) Rules, 2019” shall be substituted;
(iii) in clause (h), for the words, brackets, figures and letters “sub-regulations (2), (2A), (3) and (8) of regulation of FEMA Regulations, 2000”, the words, brackets and figures “the Foreign Exchange Management (Non-debt Instruments) Rules, 2019” shall be substituted;
(iv) clause (n) shall be omitted.
• In the said rules, rule 4A shall be omitted.
• In the said rules, in rule 5, for the words “seventy-four per cent of the total paid-up equity of the Indian Insurance Company”, the words, figures and brackets “such per cent. of the total paid-up equity of the Indian Insurance Company as provided under the Insurance Act, 1938 (4 of 1938)” shall be substituted.
• In the said rules, in rule 7, for the words, brackets, figures and letters “sub-regulations (2), (2A), (3) and (8) of regulation 5 of FEMA Regulations, 2000 and”, the words, brackets and figures “the Foreign Exchange Management (Non-debt Instruments) Rules, 2019” shall be substituted.
• In the said rules, in rule 9, in sub-rule (3), clauses (iii), (v) and (vii) shall be omitted.
[Notification No. G.S.R. 928(E)]
