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.
Home » Website » Business » Union Budget 2021: Centre Proposes To Hike FDI Cap To 74 Percent From 49 Percent In Insurance Sector
Union Budget 2021: Centre Proposes To Hike FDI Cap To 74 Percent From 49 Percent In Insurance Sector
It was in 2015 when the government hiked the foreign direct investment (FDI) limit in the insurance sector from 26 per cent to 49 per cent.
Representational Image Outlook Web Bureau 2021-02-01T15:28:59+05:30 Union Budget 2021: Centre Proposes To Hike FDI Cap To 74 Percent From 49 Percent In Insurance Sector outlookindia.com 2021-02-01T15:34:23+05:30
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In a major move, Finance Minister Nirmala Sitharaman on Monday proposed to increase foreign direct investment (FDI) limit in the insurance sector to 74 per cent from the current 49 percent cap, a move aimed at attracting greater overseas capital inflows to help enhance insurance penetration in the country.