27 April, New Delhi
Government Monday notified increase in foreign direct investment (FDI) threshold in the pension sector to 49 per cent ,giving effect to the enactment of Parliament.
”In pursuance of the enactment of Insurance Regulatory & Development Authority Act, 2013, government has decided to permit FDI in the pension sector…the decision will take immediate effect,” a notification from the Department of Industrial Policy and Promotion (DIPP) said.
While no government approval would be required up to 26 per cent FDI, the proposal would be cleared by the Foreign Investment Promotion Board beyond this limit, the maximum being 49 per cent. However, the pension funds would be subject to the norms set by the regulator , PFRDA.