New Delhi: As many as six private insurers have got FIPB approval for foreign investment proposals worth Rs 2,566 crore till February after the government increased the FDI cap in the sector to 49 per cent from 26 percent.
"As on February 29, 2016, foreign investment proposals of six insurance companies have been approved by Foreign Investment Promotion Board (FIPB), including a total quantum of Rs 2566.26 crore," said the Finance Ministry's 2015-16 Annual Report.
After prolonged deliberations and stiff opposition by Left parties, Parliament had in March 2015 amended the Insurance Act raising the foreign investment cap in the sector to 49 per cent from 26 per cent.
Following the amendments to the insurance Act, government allowed 26 per cent FDI under automatic route and beyond that up to 49 per cent was to flow in through FIPB approval route.
Later in March 2016, the government further relaxed the investment norms by permitting foreign investment in insurance sector up to 49 per cent under the automatic route.