India’s IRDAI Overhauls The Insurance Company Share Transfer And Amalgamation Framework

Background

On July 30, 2026, the Insurance Regulatory and Development Authority of India (the “IRDAI”) notified the IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) (Amendment) Regulations, 2026 (the “Amendment Regulations”), amending the IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024 (the “Principal Regulations”).  The Amendment Regulations implement the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (the “SBSR Act”), under which, among other things, the foreign direct investment cap in Indian insurance companies was raised from 74% to 100%.

This update highlights the key changes introduced by the Amendment Regulations.