FDI cap News

Insurance Amendment Bill 2021 passed in Lok Sabha The Bill seeks to raise FDI limit to 74 per cent The Bill was earlier passed in Rajya Sabha

Shares of Edelweiss Financial Services Wednesday surged over 4 percent, after its subsidiary Edelweiss Tokio Life Insurance got necessary approval from FIPB to increase its FDI cap.

"In pursuance of the enactment of Insurance Regulatory & Development Authority Act, 2013, government has decided to permit FDI in the pension sector...The decision will take immediate effect," said the note from the DIPP.

The long pending Insurance Bill, which seeks to raise FDI cap in the sector to 49 percent, is expected to be taken up in the forthcoming Winter Session of Parliament.

Nippon Life currently holds 26 percent stake in Reliance Life Insurance Company, which it had bought for Rs 3,062 crore.

The much-delayed Bill, which was listed in the Rajya Sabha agenda on Thursday could not be taken up for discussion as the opposition wanted more time to go through the amendments, sources said.

Welcoming the government's proposal to hike FDI ceiling in insurance sector to 49 percent, Fortis Healthcare Executive Chairman Malvinder Mohan Singh on Friday said the move would help insurance firms attract much-needed capital from overseas partners.

Raising FDI cap in the insurance sector will spur growth in this industry, ensuring entry of more players, Insurance Regulatory and Development Authority said on Friday.

Finance Minister Arun Jaitley on Thursday proposed raising the FDI cap from 26 percent to 49 percent.