Which of the following statements is/are correct regarding the 2026 regulations on Foreign Direct Investment (FDI) in the insurance sector?
1. 100% FDI is now permitted in Indian insurance companies under the automatic route.
2. The framework requires that the entire Board of Directors must consist of resident Indian citizens to safeguard strategic interests.

Question

Accepted Answer

A. 1 only — Statement 1 is correct as the DPIIT permitted 100% FDI under the automatic route to operationalise the Sabka Bima Sabki Raksha Act. Statement 2 is incorrect; the framework does not require the entire board to be resident Indian citizens. It only mandates that at least one top leadership position (Chairperson, MD, or CEO) must be held by a resident Indian.

100% FDI Permitted in Insurance Sector

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