"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.
In case of insurance companies, the 26 per cent cap will include Foreign Direct Investment (FDI) and investments from Foreign Institutional Investors (FIIs) and Non-Resident Indians (NRIs), said a DIPP press note.
Earlier, only FDI under the automatic route was allowed in insurance companies.
Foreign Portfolio Investors (FPIs) encompasse all foreign institutional investors (FIIs), their sub-accounts and qualified foreign investors (QFI) under a new regime that came into force on June 1, said the media report.
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.