Govt Notifies Insurance FDI Amendment Rules, 2025

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Insurance Foreign Investment Amendment Rules 2025

Notification No. G.S.R. 928(E)., Dated 30.12.2025

1. Introduction

The Central Government has notified the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025, bringing significant changes to the regulatory framework governing foreign investment in Indian insurance companies. The amendments aim to align existing rules with updated foreign exchange regulations and clarify foreign direct investment (FDI)–related provisions.

2. Amendments To Definitions And Regulatory References

The Amendment Rules revise key definitions relating to foreign direct investment under the Indian Insurance Companies (Foreign Investment) Rules, 2015. Notably, references to the erstwhile Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 have been substituted with the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, ensuring consistency with the current FEMA framework.

3. Changes In Foreign Investment Provisions

The notified rules modify provisions relating to foreign investment limits in Indian insurance companies. These changes are intended to streamline compliance requirements and provide greater clarity on permissible foreign shareholding, ownership, and control norms applicable to insurers operating in India.

4. Omission Of Clauses And Residency Requirements

The Amendment Rules omit certain specified clauses and rules under the 2015 framework to remove redundancies and overlaps. Additionally, the rules prescribe residency requirements for specific key managerial personnel, reinforcing regulatory oversight and ensuring effective management and control within Indian insurance companies.

5. Conclusion

The notification of the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025 marks an important step in modernising the foreign investment regime for the insurance sector. Insurers and foreign investors should review the amended provisions carefully to ensure compliance with the revised regulatory framework.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied