Author: CS Sachin Kotian
Published in: Taxmann
India now permits 100% foreign ownership in the insurance sector, opening new opportunities for global insurers to fully acquire or expand their presence in the market. However, achieving complete ownership requires careful compliance with the Foreign Exchange Management Act, 1999 and regulatory approvals from the Insurance Regulatory and Development Authority of India.
Foreign investors increasing their stake must follow FEMA pricing guidelines, valuation norms, and reporting requirements when acquiring shares from domestic partners. The process may also involve structured mergers and acquisitions, partner exits, and post-transaction regulatory filings.
A clear compliance and M&A roadmap helps insurers navigate regulatory requirements efficiently while unlocking the benefits of full ownership in India’s growing insurance market.
