Rajya Sabha Passes Bill To Increase Foreign Direct Investment In Indian Insurance Sector To 74%
3 years, 9 months ago

Rajya Sabha Passes Bill To Increase Foreign Direct Investment In Indian Insurance Sector To 74%

Live Law  

The Rajya Sabha on Thursday passed the Insurance Bill, 2021 which seeks to increase the maximum permissible Foreign Direct Investment in the insurance sector to 74%, from the current limit of 49%. As per the Statement of Object annexed to the Bill, "In order to achieve the objective of Government's Foreign Direct Investment Policy of supplementing domestic long-term capital, technology and skills for the growth of the economy and the insurance sector, and thereby enhance insurance penetration and social protection, it has been decided to raise the limit of foreign investment in Indian insurance companies from the existing 49 per cent. However, the Bill was strongly opposed by the Opposition members as they apprehended that privatization of the insurance sector will affect self-sustenance of the Indian economy and put the depositors' money at risk. The Bill does not contemplate a provision for preventing financially weak foreign companies from entering the Indian insurance sector.

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India’s insurance reforms: A bold transformation, but not without challenges
1 month ago

India’s insurance reforms: A bold transformation, but not without challenges

Live Mint  

India’s insurance industry, long seen as an underpenetrated yet promising market, is poised for a major transformation with the government’s proposal to permit 100% foreign direct investment in insurance companies and introduce composite licences. The proposed removal of the 74% cap will not only encourage global insurers to enter the market but also provide existing foreign investors the flexibility to …

Insurance reforms 2.0: Indians not required, and other relaxations to lure foreign money
5 months ago

Insurance reforms 2.0: Indians not required, and other relaxations to lure foreign money

Live Mint  

New Delhi/Mumbai: The government is considering another phase of reforms for India’s insurance sector, including a proposal to do away with the mandatory requirement of resident Indian citizens to be on the boards and top management of entities with majority foreign investment. The deliberations aimed at further liberalising foreign investment rules for India’s insurance sector come just three years after …

Finance ministry mulls easing laws to increase insurance penetration
2 years, 3 months ago

Finance ministry mulls easing laws to increase insurance penetration

Deccan Chronicle  

NEW DELHI: The finance ministry is contemplating changes in insurance laws, including reduction in minimum capital requirement, with a view to increasing the insurance penetration in the country. Insurance penetration in India increased from 3.76 per cent in 2019-20 to 4.20 per cent in 2020-21, registering a growth of 11.70 per cent. Easing capital requirement would allow entry of differentiated …

FDI in India: Foreign Direct Investment inflows continue to increase, says govt
2 years, 10 months ago

FDI in India: Foreign Direct Investment inflows continue to increase, says govt

Live Mint  

The Foreign Direct Investment inflows has shown a continuous increase from $45.15 billion in 2014-15 to $81.97 billion in 2020-21, Minister of State in the Ministry of Commerce and Industry, Som Parkash, said in a written reply in the Lok Sabha on Wednesday. During the last five fiscal, FDI inflows worth $339.55 billion have been reported into India. The financial …

Govt mulls allowing FDI in Life Insurance Corporation of India ahead of IPO
3 years, 3 months ago

Govt mulls allowing FDI in Life Insurance Corporation of India ahead of IPO

India TV News  

The government is considering allowing foreign direct investment in Life Insurance Corporation of India ahead of the mega initial public offering. These bankers will include Axis Capital Ltd, DAM Capital Advisors Ltd, HDFC Bank Ltd, ICICI Securities Ltd and IIFL Securities Ltd. Other bankers that made a presentation on Wednesday are JM Financial Ltd, Kotak Mahindra Capital Co Ltd, SBI …

New insurance FDI rules a mixed bag for foreign investors
3 years, 7 months ago

New insurance FDI rules a mixed bag for foreign investors

The Hindu  

NEW DELHI Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per new rules notified under the Insurance Act. “In an Indian insurance company having foreign investment exceeding 49%, not less than 50% of its directors shall be independent directors, unless the chairperson of its board …

Parliament Passes Bill To Increase FDI Ceiling Limit In Insurance Sector To 74% From 49%
3 years, 9 months ago

Parliament Passes Bill To Increase FDI Ceiling Limit In Insurance Sector To 74% From 49%

Live Law  

The Lok Sabha on Monday passed the Insurance Bill, 2021 which seeks to increase the maximum permissible Foreign Direct Investment in the insurance sector to 74%, from the current limit of 49%. As per the Statement of Object annexed to the Bill, "In order to achieve the objective of Government's Foreign Direct Investment Policy of supplementing domestic long-term capital, technology …

Rajya Sabha Passes Bill to Raise FDI in Insurance to 74%, Sitharaman Says Resident India to Head Key Positions
3 years, 9 months ago

Rajya Sabha Passes Bill to Raise FDI in Insurance to 74%, Sitharaman Says Resident India to Head Key Positions

News 18  

New Delhi: Rajya Sabha on Thursday approved a bill to raise the foreign investment limit in the insurance sector to 74 per cent with Finance Minister Nirmala Sitharaman saying while control will go to foreign companies, the majority of directors and key management persons will be resident Indians who will be covered by law of the land. Giving out reasons …

Parliament Proceedings | Rajya Sabha passes Insurance Amendment Bill to increase FDI limit to 74%
3 years, 9 months ago

Parliament Proceedings | Rajya Sabha passes Insurance Amendment Bill to increase FDI limit to 74%

The Hindu  

The Rajya Sabha on Wednesday passed the Insurance Amendment Bill 2021 that increases the maximum foreign investment allowed in an insurance company from 49% to 74%, amid criticism from the Opposition parties on the clause enabling “control and ownership” by foreign investors. Mr. Sharma said, “We are not opposed to the policy of disinvestment, but is it disinvestment or leapfrogging …

Bill to Hike FDI in Insurance Sector to 74% Passed in Rajya Sabha Amid Opposition Uproar
3 years, 9 months ago

Bill to Hike FDI in Insurance Sector to 74% Passed in Rajya Sabha Amid Opposition Uproar

News 18  

Rajya Sabha on Thursday passed a bill to hike FDI in insurance sector to 74 per cent from the current 49 per cent. The Insurance Bill 2021, moved by Finance Minister Nirmala Sitharaman in the Upper House, was passed amid uproar as the Congress and other Opposition parties raised strong objections against it. The opposition to the bill forced adjournments …

Cabinet Approves Amendments in Insurance Act to Increase FDI up to 74%: Report
3 years, 9 months ago

Cabinet Approves Amendments in Insurance Act to Increase FDI up to 74%: Report

News 18  

New Delhi: The Union Cabinet on Wednesday gave its nod for amendments in the Insurance Act, paving way for 74 per cent foreign direct investment in the sector. Currently, the permissible FDI limit in the life and general insurance stands at 49 per cent with ownership and management control with Indian. Finance Minister Nirmala Sitharaman in Budget 2021-22 said, “I …

Insurance Companies Won't Be Taking Money Outside India Despite Spike in FDI: Fin Min Secy
3 years, 10 months ago

Insurance Companies Won't Be Taking Money Outside India Despite Spike in FDI: Fin Min Secy

News 18  

Despite the Union Budget 2021 raising FDI limit up to 74 per cent, insurance companies with foreign ownerships won’t be allowed to take money outside India, said Tarun Bajaj, Secretary, Department of Economic Affairs. In an exclusive interview to Moneycontrol, Bajaj said as per the provision under insurance act, companies are not allowed to send money outside India. When the …

Union Budget 2021 | FDI limit in insurance hiked to 74%
3 years, 10 months ago

Union Budget 2021 | FDI limit in insurance hiked to 74%

The Hindu  

Union Finance Minister Nirmala Sitharaman on Monday announced an increase in Foreign Direct Investment limit in insurance from 49% to 74%. Tabling the Union Budget for 2020-21, she said, “We propose to amend the Insurance Act, 1938 and will launch a new investor charter for investor protection. Will launch a securities market code which will include the SEBI Act, the …

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