FDI Hike in Insurance Sector

The Government had introduced the Insurance Laws (Amendment) Bill, 2008 in the Rajya Sabha on 22.12.2008. The Bill, inter-alia, provides for holding of equity shares in Indian insurance companies by a foreign company, either by itself or through its subsidiary companies or its nominees to not exceed forty-nine percent of paid up equity capital. An increase in foreign equity share limit in insurance sector will potentially enable additional capital flows into the sector.

Assessing and obtaining stakeholders` views through various means is a regular feature of Government functioning, including in the insurance sector.

This information was given by the Minister of State for Finance, Smt. Nirmala Sitharaman in written reply to a question in Lok Sabha today.