New Delhi: In an effort to facilitate foreign investments in India for insurance intermediaries, the Centre on Wednesday notified 100% Foreign Direct Investment (FDI) in the sector.
Earlier, Union Finance Minister Nirmala Sitharaman had proposed 100% FDI for insurance intermediaries. Prior to this, the FDI limit was set at 49%.
Sitharaman had also said that the government was also looking into the possibility of hiking the FDI limit in the insurance companies. However, she did not indicate the new cap that the government was considering. Nevertheless, there were indications that the Narendra Modi-led government had been in favour of a 74% FDI cap for insurance companies.
The government had recently announced its intent to relax FDI norms in several sectors. While presenting the Budget in July, Sitharaman had said that the government intends to carry out FDI reforms in aviation as well as multimedia sectors like animation and gaming.
Sitharaman had also committed to easing sourcing norms on single brand retail and allowing 100% FDI for insurance intermediaries.
The minister had also announced that foreign portfolio investment (FPIs) will be permitted to subscribe to listed debt securities issued by ReITs and InvITs.