: Insurers welcome hike in FDI cap in insurance #IndiaNEWS #Business Mumbai: The government’s proposal to hike foreign direct investment (FDI) limit in the insurance sector to 74 per cent has been

Insurers welcome hike in FDI cap in insurance #IndiaNEWS #Business
Mumbai: The government’s proposal to hike foreign direct investment (FDI) limit in the insurance sector to 74 per cent has been welcomed by experts. They said this move will bring in new sources for funding for the players, which will help them in strengthening their solvency. The move will also help in improving insurance penetration and job creation. It would result in an increase in merger and acquisition activity in the sector, industry players believe.
“I propose to amend the Insurance Act, 1938 to increase the permissible FDI limit from 49 per cent to 74 per cent in insurance companies and allow foreign ownership and control with safeguards,??? Finance Minister Nirmala Sitharaman said during her budget speech in the Parliament.
Moody’s Investors Service senior analyst (financial institutions) Mohammed Ali Londe said the proposal to increase the FDI limit is positive for insurers.
“The possibility of higher foreign ownership would improve insurerp?&H?[?[??X[?^X?[]H?H???[??Y][?[??[?]Y?????????[??K?[?Y][?[???????[?[?Y?]???HH??[??????X[?Y?[Y[????X?X?????X?HXY[???H???[???^???H?Y??????]?[?Y?[?????X??Y?][X[?Y?[Y[?8???H?ZY???'?H?[?Y?]??H^X?YX????H[???[??HX??]?H????Y[???[][[?[??H[???[??Y]]?[Z?HP??T?[??]?]?H?H?H????Y[?[??Y?[??[[??????X?[???]H?[???[???ZY?[??Y[??????[?[][]]?[H[??HH?X?[????[?H?HX??]8?&?[???][?????X[??H?]?[?Z??Z[?[???][??8???HYY??[???XY?XZ??????[??[?[??[?H?^???X[H?]?[X[???X???[????[??H????Y?HX[?Y?[???X??[??S?[?Z?X]??[^][?[??H?H??]]?H?]????H[???[??H?X????Z?[??H[???Y[??[?[???[??H??[?Y????H?H?^H[X[?????[????[[?????Y??H????Y[?Y[Y[?YH?H?X?H?[??L??[???ZY?[???Y[?[?[???[??H[??YYX?Y??[???YX??&??Y?]???'H[?H?[[[?????]?X?[?H?][?^[???[???[???[[???[?X[H????H????Y[??]??Y[????[[YK8???]YX]?????[Y[?[???H]?[?Y[??[X[??H?[??[[???[??H^X?]]?H?X??[??S??Z???Z[??ZYH[??X?H[?H[Z]??H???[?[??[???H[X[??]?[??Z[?H[]?X??????ZY?[???Y[?X??X?[???Z??[???[??[?HX?[]H?H[???[??H?X????X??YH??[H??]]]?K??Y[?Z???[??[[???[??H^X?]]?H?X??[??S??[?ZH????ZYH[?H?[[??[??[?H?X??[?[??[???[?]?][??[???[??H[?H??[??K?X??[????Z[?H??]??Y?K?

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