New Delhi, July 13 (PTI): Keen to raise the foreign investment limit to 49 per cent in the insurance sector, the finance ministry has said it will try to push the insurance bill to amend the laws on this in the current session itself.
“Insurance bill is already in Parliament. We will try if it can be pushed in this session or may be next session,” department of financial services secretary G.S. Sandhu said.
Finance minister Arun Jaitley in the budget speech said, “It is also proposed to take up the pending Insurance Laws (Amendment) Bill for consideration of Parliament.
“The insurance sector is investment starved. Several segments of insurance sector need expansion. The composite cap of the insurance sector is proposed to be increased to 49 per cent from the current level of 26 per cent with full management and control through the FIPB route”.
The move will help insurance firms to get the much needed capital from overseas partners.
The proposal to raise FDI cap has been pending since 2008 when the previous UPA government came up with the bill to hike foreign holding in insurance joint ventures to 49 per cent.