This ad will auto close in 10 seconds

Govt may hike FDI cap in insurance, pension next week

Last Updated: Friday, September 21, 2012 - 10:49

Zeebiz Bureau

New Delhi: The Cabinet meeting scheduled for Friday to decide on foreign direct investment (FDI) in insurance sector has been deferred to Tuesday.

According to reports, Centre could hike the FDI cap in insurance from the existing 26 percent to 49 percent.

Media reports also said the cabinet committee on economic affairs (CCEA) would take up the issue of enhancing FDI in the pension sector as well. T

he government wants FDI in the pension sector to be capped at the same level as in insurance.

As per the current regulation, a foreign player cannot have more than 26 percent stake in private insurance companies in the country.

Earlier, the Standing Committee had rejected the government's proposal to raise foreign direct investment ceiling to 49 percent in December last year.

The committee in its report on the Insurance Laws (Amendment) Bill, 2008, had said the proposal to increase the FDI cap to 49 percent in insurance companies seems to have been decided upon "without any sound and objective analysis of the status of the insurance sector following liberalisation".

First Published: Thursday, September 20, 2012 - 19:47
comments powered by Disqus