Zee Media Bureau/Deepak Nagpal
New Delhi: The Union Cabinet on Thursday cleared the proposal to raise foreign direct investment (FDI) in the insurance sector through FIPB route from the current 26 percent to 49 percent.
The decision was taken at a meeting held this morning.
As per the Cabinet decision, the management control over insurance companies would continue in the hands of Indian promoters.
"The Cabinet Committee on Economic Affairs has approved raising of FDI cap in insurance sector to 49 per cent from 26 per cent," sources said after a meeting of the CCEA, headed by Prime Minister Narendra Modi.
With the Cabinet approving the amendments to the long pending Insurance Laws (Amendment) Bill, it will now be taken up by Parliament.
The insurance sector was opened up for private sector in 2000 after the enactment of the Insurance Regulatory and Development Authority Act, 1999 (IRDA Act, 1999). This Act permitted foreign shareholding in insurance companies to the extent of 26 per cent with an aim to provide better insurance coverage and to augment the flow of long term resources for financing infrastructure.
Also today, the Cabinet was expected to discuss the Constitution Amendment Bill to set up the Judicial Appointments Commission to replace the present system of appointing judges through a collegium.
But no details of the same were available.
“The government is seeking the views of various political parties and eminent jurists on the proposal for setting up of a Judicial Appointments Commission,” Law Minister Ravi Shankar Prasad had recently told the Lok Sabha.
The issue has gained importance in the wake of recent incidents wherein the government returned the collegium recommendation of appointing an ex-Solicitor General as a Supreme Court judge, and a former High Court Chief Justice alleging that a corrupt judge was given an extension by the previous UPA government against collegium`s wishes.
(With agency inputs)