Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 12 FEBRUARY 2025

Insurance 2.0 | 100% FDI In Indian Insurers

Khaitan & Co.
Khaitan & Co.
Contributor
Khaitan & Co.

Khaitan & Co.

Founded in 1911, Khaitan & Co is a heritage law firm that has been a trusted adviser to leading...

View firm profile
Explore more from Khaitan & Co.

On 1 February 2025, the Honourable Finance Minister of India as part of her budget speech announced the much-awaited increase in the foreign direct investment (FDI) limit for the Indian insurance sector from 74% to 100% as part of the budget speech for 2025 (Budget Speech).

IndiaInsurance
Nikhil Narayanan
Nikhil Narayanan
Aravind Venugopal
Aravind Venugopal
Akhil Sharma
Akhil Sharma
Author LinkedIn connections

Introduction

On 1 February 2025, the Honourable Finance Minister of India as part of her budget speech announced the much-awaited increase in the foreign direct investment (FDI) limit for the Indian insurance sector from 74% to 100% as part of the budget speech for 2025 (Budget Speech).

This announcement follows the public consultation initiated by the Ministry of Finance in November 2024 for amending the Insurance Act, 1938 (Insurance Act) to inter alia provide for: (a) increase in FDI limit to 100%; (b) a composite license regime for life and non-life insurance business under a single license (as opposed to standalone licenses for life, general and health insurance); and (c) regulatory framework for managing general agents. Our update with respect to this is available here.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this document does not necessarily reflect the views / position of Khaitan & Co but remain solely those of the author(s). For any further queries or follow up, please contact Khaitan & Co at [email protected].

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

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

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”).
IndiaInsurance
Majmudar & Partners
Majmudar & Partners
Article

IRDA Proposes To Recalibrate The Economics Of Insurance Distribution

The Insurance Regulatory and Development Authority of India (“IRDAI”) released a public consultation paper last month titled, “Recalibrating Economics of Insurance Distribution” (the “PCP”), inviting stakeholder comments. Aligned with the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, the PCP addresses IRDAI’s concern that distribution costs have risen disproportionately to premium growth without corresponding improvements in policyholder outcomes or insurance penetration.
IndiaInsurance
Majmudar & Partners
Majmudar & Partners
Article

Ministry Of Labour And Employment Operationalises The Provisions On Payment Of Statutory Bonus

On 25 August 2026, the Ministry of Labour and Employment issued two notifications (Notifications) under the Code on Wages, 2019 (Wage Code), thereby operationalising specified provisions relating to payment of statutory bonus for establishments for which the appropriate government is the Central Government. The Wage Code consolidates the legislative framework governing wages and related employee entitlements, including the regime previously governed by the Payment of Bonus Act, 1965.
IndiaEmployment and HR
Khaitan & Co.
Khaitan & Co.
Article

Punjab And Haryana High Court Strikes Down JAO - FAO Retrospective Amendment As Unconstitutional

The Hon’ble Punjab and Haryana High Court (HC) in Jyoti Sareen vs. UOI & Others (CWP No. 15791-2024 (O&M)) (Order) held the retrospective amendments carried out vide the Finance Act, 2026, with respect to the powers of the Jurisdictional Assessing Officer (JAO) to issue a reopening notice under section 148 (Reopening Notice) of the Income-tax Act, 1961 (IT Act), as unconstitutional, being violative of the ‘doctrine of separation of powers’ and thus violative of Article 14 of the Constitution of India.
IndiaGovernment, Public Sector
Khaitan & Co.
Khaitan & Co.
Article

Supreme Court Clarifies Applicability Of SARFAESI Remedies For A Secured Creditor Who Acquires An NPA From A Non-notified NBFC

In Kotak Mahindra Bank Limited v Trupti Sanjay Mehta and Others, 2026 INSC 943 (Kotak Mahindra), the Hon’ble Supreme Court of India considered whether a bank as defined under Section 2(1)(c) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) could invoke the provisions of the SARFAESI Act to recover a secured debt acquired from an entity which was not covered under the ambit of the SARFAESI Act at the time of disbursement of the loan.
IndiaFinance and Banking
Khaitan & Co.
Khaitan & Co.
Article

DOT Notifies Telecom Network Authorisation Rules, 2026: What Has Changed?

On 20 July 2026, the Department of Telecommunications (DoT) notified the Telecommunications (Authorisation for Telecommunication Network) Rules, 2026 (Rules). The Rules operationalise Section 3(1)(b) of the Telecommunications Act, 2023 and establish a framework for six categories of telecommunication network authorisations: infrastructure provider (IP) (formerly, IP-I), digital connectivity infrastructure provider (DCIP), internet exchange point (IXP) provider, satellite earth station gateway (SESG) provider, cloud-hosted telecommunication network (CTN) provider and mobile number portability (MNP) provider.
IndiaMedia, Telecoms, IT, Entertainment
Khaitan & Co.
Khaitan & Co.
Article

ASCI Releases Guidelines For Responsible Labelling Of Synthetically Generated Content In Advertising

On 29 September 2026, the Advertising Standards Council of India (ASCI) released the Guidelines for Responsible Labelling of Synthetically Generated Content in Advertising (Guidelines), following consultation on the draft guidelines issued in May 2026. The Guidelines set out labelling requirements for synthetic content in advertisements and identify prohibited use cases. The Guidelines come into effect three months after the date of publication (i.e., 29 December 2026).
IndiaMedia, Telecoms, IT, Entertainment
Khaitan & Co.
Khaitan & Co.