The government plans to introduce a bill in the upcoming Winter session of Parliament to raise the foreign direct investment (FDI) limit in the insurance sector to 100 per cent from the current cap of 74 per cent, according to a Lok Sabha bulletin.The Winter session is scheduled from December 1 to 19 and will include 15 working days, PTI reported.The Insurance Laws (Amendment) Bill, 2025 — aimed at deepening insurance penetration, accelerating sectoral growth and improving ease of doing business — is among 10 legislations listed for introduction. Finance Minister Nirmala Sitharaman had proposed the 100 per cent FDI limit in her Budget speech earlier this year as part of new-generation financial sector reforms.So far, the insurance sector has attracted Rs 82,000 crore in FDI.Multiple Acts to be amendedThe proposal includes amendments to the Insurance Act, 1938, including reduction in paid-up capital thresholds and introduction of a composite licence. As part of a wider legislative overhaul, the Life Insurance Corporation Act, 1956 and the Insurance Regulatory and Development Authority Act, 1999 will also be amended alongside the Insurance Act.Amendments to the LIC Act will empower its board to take operational decisions such as branch expansion and recruitment.The reforms seek to promote policyholder interests, enhance financial security, and increase participation of new players, thereby supporting economic growth and employment generation.The government said the changes aim to boost efficiency, ease of doing business and increase insurance penetration to achieve the target of “Insurance for All by 2047”.Single securities market code also plannedThe finance ministry will also introduce the Securities Markets Code Bill (SMC), 2025, seeking to merge the SEBI Act, 1992; Depositories Act, 1996; and Securities Contracts (Regulation) Act, 1956 into a single framework.Separately, the ministry will present the first batch of Supplementary Demands for Grants for 2025-26 to seek Parliamentary approval for additional expenditure outside the Budget. The second batch will be tabled in the Budget session due early next year.
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