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FM looking to raise FDI cap in insurance

The industry players have sought an increase in the FDI limit to raise funds for expansion

June 03, 2014 10:37 IST | India Infoline News Service
The Ministry of Finance is considering to raise FDI (foreign direct investment) cap in insurance sector from 26% to 49%, according to a media report.
However, the hike in the sector is expected to be introduced with some riders like restriction on voting right, the report added.
The industry players have sought an increase in the FDI limit to raise funds for expansion.
The finance ministry is expected to raise the FDI cap in the sector by starting first with the non-life segment and then moving on to other segments.
Last week Financial Services Secretary GS Sandhu gave a presentation to Finance Minister Arun Jaitley on the issues concerning the insurance sector.
The insurance sector was opened up to the private sector in 2000 after the enactment of the Insurance Regulatory and Development Authority Act, 1999.
The Insurance (Amendment) Bill that had proposed raising FDI limit to 49% has been pending in Parliament since 2008.

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