FDI in Insurance hiked to 74%, LIC IPO in 2022
The hike will offer foreign promoter an opportunity to buy out their cash-strapped Indian partners if necessary
FDI in Insurance hiked to 74%, LIC IPO in 2022
India's Finance Minister Nirmala Sitharaman on Monday, in her Union Budget speech, announced a proposal to increase the foreign direct investment (FDI) limit in the insurance sector to 74 per cent.
Sitharaman said the Insurance Act 1938 will be amended to "increase permissible FDI limit from 49 per cent to 74 per cent in insurance companies and allow foreign ownership and control with safeguards".
"Under the new structure, the majority of directors on the board and key management persons would be resident Indians with at least 50 per cent of directors being independent directors and specified percentage of profits being retained as general reserves," she said.