Effective or announced 9 February 2026Impact for foreign investors: high
What changed
Press Note 1 of 2026 placed 100% FDI in insurers under the automatic route. It took legal effect through the FEMA rules amendment published on 2 May 2026. Conditions remain: IRDAI verification, and one of the chairperson, MD and CEO must be a resident Indian citizen. LIC is capped at 20%. Insurance intermediaries are also 100% automatic.
Who it affects
Foreign insurers, reinsurers and intermediaries, and their Indian partners.
What to do
Plan board and management appointments to meet the residency condition, and engage IRDAI early on verification.