Ministry of finance plans to raise FDI cap in insurance sector to 49%

The Insurance Bill is back on the table, the finance ministry is considering a hike in FDI cap in the insurance sector to 49%.

In the past, the Insurance Bill had been sent to the Cabinet and no decision was taken because at that time the finance minister had said that 26% is already allowed and hence it makes sense if FDI is invited to take it up to 49%. Now, the finance ministry has made necessary changes in the Insurance Bill and it will be resent to the Cabinet.

In fact, in the Pension Bill too the FDI cap has been kept at 49% as the government wants to keep both of them inline. After taking the approval of the Cabinet then the Bill will be introduced in the Parliament. This will be a huge defining change for both the insurance and pension sector if 49% FDI is allowed and it will be greeted with big thumbs up from the corporate sector.

 

 

http://www.moneycontrol.com/news/economy/mof-plans-to-raise-fdi-capinsurance-sector-to-49_714347.html