Setback for FDI hike in Insurance:
In a move that could dent investor sentiment, the parliamentary standing committee on finance is set to reject government's move to further open up the insurance sector. The Insurance Amendment Bill, tabled in Parliament, had proposed to raise the foreign investment limit in the key financial sector to 49% from 26% fixed a decade ago. A majority of committee members felt that a higher foreign investment ceiling could affect domestic players.
In a move that could dent investor sentiment, the parliamentary standing committee on finance is set to reject government's move to further open up the insurance sector. The Insurance Amendment Bill, tabled in Parliament, had proposed to raise the foreign investment limit in the key financial sector to 49% from 26% fixed a decade ago. A majority of committee members felt that a higher foreign investment ceiling could affect domestic players.
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4 comments:
I THINK GOVT. SHOULD HAVE TO PASS IT NOW BECAUSE ONLY COMPETITION CAN INCREASE THE PENETRATION FURTHER WHICH IS VERY LOW NOW. WE HAVE THE EXAMPLE OF TELECOM INDUSTRY IN THAT MATTER.
it just a matter of time...sooner or later FDI in insurance will be increased to 49% which will lead to business transparency in the sector with dynamic product range from across the globe.
A hike in FDI will ensure a more efficient insurance sector.Capital has, so far, not been a major constraint for the insurance industry, given the way they have been expanding their business. Insurers need capital to meet unexpected claims and investment losses. Also hike in FDI cap would help customers with competitive products, more options and better service levels.
Well according to me increasing fdi stake will only make the things better for the consumers and thats why fdi should be increased.
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