New Delhi, May 3 -- The Central Government has notified key amendments to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, significantly liberalising foreign investment norms in the insurance sector. The changes were issued through a Gazette notification dated May 2, 2026, by the Ministry of Finance.

A major highlight of the amendment is the permission for "100% Automatic" foreign investment in insurance companies and insurance intermediaries. The notification specifies under the revised framework that "the aggregate holdings by way of total foreign investment... is permitted up to one hundred per cent of the paid-up equity capital of such Indian Insurance company."

The move extends to a wide range of insurance-relate...