The government plans to introduce the legislation in Lok Sabha on Monday, sources said. (Photo: Pixabay) Show Quick Read Summary is AI Generated. Newsroom Reviewed

The Union Cabinet has approved the Insurance Amendment Bill, increasing the cap of foreign direct investment into the sector to 100%, sources told NDTV Profit on Friday.

The government plans to introduce the legislation in Lok Sabha on Monday, they added.

With this reform, foreign investors will be allowed to hold up to 100% stake in insurance companies based in India, as compared to the existing rules that cap their ownership at 74%.

The proposal was first floated by Finance Minister Nirmala Sitharaman in February, while presenting the Union Budget for financial year 2025-26.

The enhanced limit will be available for

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