Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-02052026-272206
EXTRAORDINARY
PART II-Section 3-Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 2099]
NEW DELHI, SATURDAY, MAY 2, 2026/VAISAKHA 12, 1948
MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 2nd May, 2026
S.O. 2186(E). In exercise of the powers conferred by clauses (aa) and (ab) of sub-section (2) of section 46
of the Foreign Exchange Management Act, 1999 (42 of 1999), the Central Government hereby makes the following
rules further to amend the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, namely: —
1. Short, title and commencement.-(1) These rules may be called the Foreign Exchange Management (Non-debt
Instruments) (Second Amendment) Rules, 2026.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, in Schedule I, in the Table, for serial
number F.8 and the entries relating thereto, the following serial number and entries shall be substituted, namely: -
+---------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+-------------+
| SL. No. | Sector/ Activity | Sectoral Cap | Entry Route |
| (1) | (2) | (3) | (4) |
+=========+=========================================================================================================================================================================================+==============+=============+
| "F.8 | Insurance | | |
+---------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+-------------+
| F.8.1 | Insurance Company | 100% | Automatic |
+---------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+-------------+
| F.8.2 | Life Insurance Corporation of India | 20% | Automatic |
+---------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+-------------+
| F.8.3 | Insurance Intermediaries including insurance brokers, re- | 100% | Automatic |
| | insurance brokers, insurance consultants, corporate agents, third | | |
| | party administrator, Surveyors and Loss Assessors, managing | | |
| | general agents, insurance repositories and such other entities, as | | |
| | may be notified by the Insurance Regulatory and Development | | |
| | Authority of India from time to time. | | |
+---------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+-------------+
F.8.3.1 Other conditions applicable to Indian insurance companies and insurance intermediaries
(a) 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.
(b) The foreign investment up to one hundred per cent. of the total paid-up equity of the Indian
Insurance Company shall be allowed on the Automatic Route subject to approval and verification
by the Insurance Regulatory and Development Authority of India.
(c) Foreign investment in this sector shall be subject to compliance with the provisions of the
Insurance Act, 1938(4 of 1938), and the condition that Companies receiving FDI shall obtain
necessary licence or approval from the Insurance Regulatory and Development Authority of India
for undertaking insurance and related activities.
(d) (I) In an Indian Insurance Company having foreign investment, at least one among the
Chairperson of its Board, its Managing Director and its Chief Executive Officer, shall be Resident
Indian Citizens.
(II) An Indian Insurance company having foreign investment shall comply with the provisions
under the Indian Insurance Companies (Foreign investment) Rules, 2015 and the applicable rules
or regulations notified by the Department of Financial Services or Insurance Regulatory and
Development Authority of India, from time to time.
(e) Foreign portfolio investment in an Indian Insurance company shall be governed by the provisions
contained in Chapter-IV, rule 10 and 11 read with Schedule II of Foreign Exchange Management
(Non-Debt Instruments) Rules, 2019, and provisions of the Securities and Exchange Board of
India (Foreign Portfolio Investors) Regulations, 2019.
(f) Any increase in foreign investment in an Indian Insurance company shall be in accordance with
the pricing guidelines specified under these rules.
(g) The foreign equity investment cap of hundred per cent. shall apply on the same terms as above to
insurance brokers, re-insurance brokers, insurance consultants, corporate agents, third party
administrator, Surveyors and Loss Assessors, managing general agents, insurance repositories
and such other entities, as may be notified by the Insurance Regulatory and Development
Authority of India from time to time.
(h) The Foreign Direct Investment proposals shall be allowed under the Automatic Route subject to
verification by the Authority and the foreign investment in insurance intermediaries shall be
governed by the same terms as provided under rules 7 and 8 of the Indian Insurance Companies
(Foreign Investment) Rules, 2015 :
Provided that where an entity like a bank, whose primary business is outside the insurance area,
is allowed by the Insurance Regulatory and Development Authority of India to function as an
insurance intermediary, the foreign equity investment caps applicable in that sector shall continue
to apply, subject to the condition that the revenues of such entities from their primary (i.e., non-
insurance related) business must remain above fifty per cent. of their total revenues in any
financial year.
(i) The insurance intermediary that has majority shareholding of foreign investors shall undertake
the following:
(i) be incorporated as a limited company under the provisions of the Companies Act,
2013(18 of 2013);
(ii) at least one from among the Chairman of the Board of Directors or the Chief Executive
Officer or Principal Officer or Managing Director of the insurance intermediary shall be
a resident Indian citizen;
(iii) shall bring in the latest technological, managerial and other skills; and
(iv) shall make disclosures in the formats to be specified by the Authority of all payments
made to its group or promoter or subsidiary or interconnected or associate entities;
(j) The other conditions under the heading ‘Banking-Private Sector' prescribed against Sl. No. F.2.1
shall be applicable in respect of bank promoted insurance companies.
(k) The expressions 'Equity Share Capital', 'Foreign Direct Investment' (FDI), 'Foreign Investors',
'Foreign Portfolio Investment', 'Indian Insurance Company', 'Indian Company', 'Non-resident
Entity', 'Resident Indian Citizen', 'Total Foreign investment' shall have the same meaning as
provided in the relevant rules notified by the Department of Financial Services under the
Insurance Act, 1938(4 of 1938) or in the regulations issued by Insurance Regulatory and
Development Authority of India from time to time, in respect of foreign investment in Indian
Insurance Companies and Insurance intermediaries.
F.8.3.2 Other conditions applicable to the Life Insurance Corporation of India (LIC):
(a) Foreign investment in LIC shall be subject to compliance with the provisions of the Life Insurance
Corporation Act, 1956 (31 of 1956), and such other provisions of the Insurance Act, 1938
(4 of 1938), as are applicable to LIC as per the provisions of section 43 of the Life Insurance
Corporation Act, 1956 (31 of 1956).
(b) Provisions of clauses (e) and (f) under Sl. No. F.8.3.1, shall also apply to LIC as if reference
therein to an Indian Insurance Company is a reference to LIC.
(c) The expressions referred to in clause (k) under Sl. No. F.8.3.1, shall have the meanings as
respectively referred to them therein.
Explanation. - For the purposes of this Sl. No., any reference to Indian insurance company or
company referred to in clause (k) under Sl. No. F.8.3.1, shall be construed as a reference to LIC".
[F. No. 1/5/EM/2019]
ALOK TIWARI, Jt. Secy.
Note: The Foreign Exchange Management (Non-debt Instruments) Rules, 2019 were published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (ii) vide number S.O.3732 (E), dated the 17th October, 2019 and
subsequently amended vide the following notification numbers:
(i) S.O. 4355 (E), dated the 5th December 2019;
(ii) S.O. 1278 (E), dated the 22nd April, 2020;
(iii) S.O. 1374 (E), dated the 27th April, 2020;
(iv) S.O. 2442 (E), dated the 27th July, 2020;
(v) S.O. 4441 (E), dated the 8th December, 2020;
(vi) S.O. 3206 (E), dated the 9th August, 2021;
(vii) S.O. 3411 (E), dated the 19th August, 2021;
(viii) S.O. 4091 (E), dated the 5th October 2021;
(ix) S.O. 4242 (E), dated the 12th October 2021;
(x) S.O. 1802 (E), dated 12th April 2022;
(xi) S.O. 332 (E), dated 24th January 2024;
(xii) S.O. 1361 (E), dated 14th March 2024;
(xiii) S.O. 1722 (E), dated 16th April 2024;
(xiv) S.O. 3492 (E), dated 16th August 2024;
(xv) S.O. 2549 (E), dated 11th June 2025; and
(xvi) S.O. 2174(E), dated 1st May 2026 and published on 2nd May 2026.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
Login to read full text