The Ministry of Commerce & Industry (MoC&I), on February 09, 2026, notified regarding the review of Foreign Direct Investment (FDI) policy on the Insurance Sector.
The following has been stated namely: -
• 5.2.22.3.1 Other conditions applicable to Indian insurance companies and insurance intermediaries:- The aggregate holdings by way of total foreign investment in the equity shares of an Indian Insurance Company by foreign investors, including portfolio investors, is permitted up to one hundred per cent of the paid- up equity capital of such Indian Insurance company.
• The foreign investment up to one hundred percent of the total paid-up equity of the Indian Insurance Company shall be allowed on the Automatic Route, subject to approval/verification by the Insurance Regulatory and Development Authority of India.
• Foreign investment in this sector shall be subject to compliance with the provisions of the Insurance Act, 1938, as amended from time to time and the condition that Companies receiving FDI shall obtain the necessary license /approval from the Insurance Regulatory & Development Authority of India for undertaking insurance and related activities.
[Press Note No. 1 (2026 Series)]
