“Total foreign investment in an Indian insurance company shall mean the sum total of direct and indirect foreign investment by foreign investors in such company, calculated in such manner as is specified in regulations made by the Authority (IRDAI) with regard to registration of Indian insurance companies,” it said.
“In the principal rules, in rule 3, for the word ‘forty-nine’, the word ‘seventy-four’ shall be substituted,” it said.
FDI in the insurance sector was increased from 26 per cent to 49 per cent in 2015.
The announcement for hiking the FDI limit was made in the Union Budget 2021-22 on February 1.
The new arrangement is expected to benefit 23 private life insurers, 21 private non-life insurers and seven specialised private health insurance companies.