India's financial sector is undergoing rapid expansion, with both strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities. The Indian Government is liberalising the sector. The Insurance Laws (Amendment) Act which includes a key provision allowing foreign investors to increase stakes in local insurers from 26% to 49% was passed in March, 2015, and there is potential for this to increase further. Foreign Investments are to be allowed in Alternative Investment Funds. The distinction between different types of investment (i.e. Foreign Portfolio Investments and Foreign Direct Investment) is to be replaced with composite caps which will create headroom and flexibility for overseas investors.