The proposal will be presented before the cabinet for approval.
Finance Minister, P Chidambaram has given a green signal to raise the foreign direct investment (FDI) bar to 49 percent from 26 percent in insurance and pension products, said industry experts.
“It is good news for the industry that the Finance Minister has cleared the bill. It will now be presented in the cabinet. We need to wait and watch how things go,” says a top official of SBI Life Insurance.
Insurers are hopeful that this regulation will be passed though politically it seems to be a tough task. Along with raising the FDI limit, the insurance amendment bill aims to strengthen regulation of the sector and allow foreign re-insurers to enter the Indian market, shared industry officials.