Government may retain FDI in the insurance sector to existing 26 % as recommended by Standing Committee on Finance. The issue of foreign investment in insurance sector is on the agenda of the Cabinet, which will meet on Thursday.
As per the current regulation, a foreign player cannot have more than 26 % stake in private insurance companies in the country. The Standing Committee had rejected the government's proposal to raise foreign direct investment ceiling to 49 % in December 2011. However, the panel, had agreed on the need to bring in comprehensive changes in the archaic laws governing the insurance sector.
View: Markets also expect the status quo on insurance FDI due to stiff opposition from the standing committee but any easing of the FDI limits in future will be positive for insurance companies.
....more info
As per the current regulation, a foreign player cannot have more than 26 % stake in private insurance companies in the country. The Standing Committee had rejected the government's proposal to raise foreign direct investment ceiling to 49 % in December 2011. However, the panel, had agreed on the need to bring in comprehensive changes in the archaic laws governing the insurance sector.
View: Markets also expect the status quo on insurance FDI due to stiff opposition from the standing committee but any easing of the FDI limits in future will be positive for insurance companies.
....more info