The Ministry of Finance has notified the Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2021 to further amend the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
Schedule-I of the FEMA Rules deals with Purchase or sale of equity instruments of an Indian company by a person resident outside India. The FEMA Rules have been amended to increase the limit of foreign direct investment in insurance sector from 49% to 74%.
It is further clarified that an Indian Insurance company having foreign investment shall comply with the provisions under the Indian Insurance Companies (Foreign Investment) Rules, 2015.
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