The government, on recommendation of the Foreign Investment Promotion Board (FIPB), has said the proposal of raising the foreign direct investment (FDI) in HDFC Life Insurance will need approval of the Cabinet Committee on Economic Affairs (CCEA).
However, it may not be the only venture requiring clearance from the CCEA.
Industry sources said clarity was sought from the CCEA on HDFC Life, which has a step-down subsidiary, HDFC Pension, a pension fund manager. While HDFC Life is an Indian-owned company, clarity has been sought on the ownership status of HDFC Pension.
According to the definitions by the FIPB in rules set out in February 2015, the foreign equity investment cap of 49 per cent is applicable to all Indian insurance companies.
