FDI IN INSURANCE SECTOR

It seems that the government’s floor managers, led by Hon’ble Finance Minister Arun Jaitley, have reached out to Opposition parties for securing their support for passing bills to replace various ordinances, issued by the government recently, in the budget session of Parliament that begins on February 23.The 49 per cent cap would include both FDI and foreign portfolio investments.

The proposed hike in foreign investment limit to 49 per cent in the insurance sector has potential to attract up to USD 7-8 billion (about Rs 50,000 crore) from overseas investors, giving a major boost to the segment.

The total capital deployed in the private life insurance sector is close to Rs 35,000 crore. At FDI at 26 per cent, foreign equity is close to Rs 8,700 crore.

There are 52 insurance companies operating in India, of which 24 are in the life insurance business and 28 in general insurance business. In addition, GIC is the sole national reinsurer.

P Chhajed & Co LLP, a renowned and Top Chartered Accountant Firm in Ahmedabad, is a Limited Liability Partnership Form of organization, a highest form of organization a Chartered Accountancy Firm is permitted to form.

LEAVE REPLY

Your email address will not be published. Required fields are marked *