Allows 100 per cent foreign ownership in insurance sector
21 Dec 2025
On 21 December 2025, India adopted an amendment to its insurance legislation—Sabka Bima Sabki Raksha—to allow 100 per cent foreign direct investment in the insurance sector. The amendment removed the previous foreign ownership cap of 74 per cent and permitted full foreign ownership of insurance companies.
In addition, a follow-up notification issued under the Indian Insurance Companies (Foreign Investment) Rules relaxed existing governance requirements. Alongside the removal of the foreign investment cap, the earlier requirement for a majority Indian board was eased. Under the revised rules, it is now sufficient for at least one key position—Chairperson of the Board, Chief Executive Officer or Managing Director—to be held by an Indian resident.
Nature of measure:
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Liberalization
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Other regulatory changes
Type:
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Entry and establishment (Ownership and control)
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Treatment and operation (Operational conditions )
Industry:
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Services (Financial and insurance activities)
Inward FDI:
Yes
Outward FDI:
No
Sources:
