New Delhi, May 4 -- The Centre has notified two major changes to foreign direct investment (FDI) rules, easing norms for certain overseas investors with exposure to neighbouring countries and allowing up to 100 percent FDI in the insurance sector.
Under the revised rules, effective May 1, foreign companies with up to 10 percent shareholding from entities in countries sharing land borders with India, including China and Hong Kong, can invest through the automatic route in sectors where such investment is permitted.
Earlier, any level of ownership from these countries required prior government approval under the norms introduced in 2020, reported PTI.
New Ownership Threshold and Exemptions
The relaxation, approved by the Union Cabin...