FPIs, NRIs can invest up to 26% in insurance: RBI

Under the new norms, 26% foreign investment including FDI, FII and NRI will be allowed under the automatic route

The Reserve Bank on Thursday said overseas investors, including FPIs and NRIs, can invest up to 26 per cent in insurance and allied activities through the automatic route. "Effective from February 4, 2014, foreign investment by way of FDI, investment by FIIs/FPIs and NRIs up to 26 per cent under automatic route shall be permitted in insurance sector," RBI said in a circular. Under the new norms, 26 per cent foreign investment including FDI, FII and NRI will be allowed under the automatic route in insurance companies, insurance brokers, Third Party Administrators (TPAs), surveyors and loss assessees. The companies bringing in foreign investment will, however, have to obtain necessary licence from the Insurance Regulatory and Development Authority (IRDA) for undertaking prescribed activities.