Select Your Location
In the Budget 2019-20 Finance Minister Niramala Sitharaman had announced that the government would “examine suggestions of further opening up of FDI” in a number of sectors, including insurance, along with 100% FDI in insurance intermediaries. At present, the stake of FDI is 49 Percent. The proposal by the Finance Ministry was to raise the cap to 100 percent. The finance ministry along with the Insurance Regulatory and Development Authority of India (IRDAI) agreed with the proposal of 74 percent. Views of stakeholders on this matter in a letter on 2nd December has called for suggestions on raising Foreign Direct Investment Limit (FDI) by 74%. In July budget, Finance Minister Niramala Sitharaman announced that the Government will examine suggestions from various stakeholders to further open up FDI in Insurance Sector.
Table of Contents
“The move will bring in cost-effective capital for several insurers who are investing in technology and digital solutions, and who are wanting to expand the network to grow and make multi-fold impact towards building a long term and sustainable insurance sector,” said Ashish Vohra, ED & CEO, Reliance Nippon Life Insurance.
The benefits are:
The government is seriously contemplating opening up the sector as it wants long-term stable money to be invested in the country. IRDAI is seeking inputs from industry people on government instructions and a report is expected to be submitted soon,” said a person involved in the discussions. “If all goes well, the government is planning to introduce this as part of the budget announcement and take a shortcut so that it gets Parliament’s nod as part of the Finance Bill.”
Also, Read: Types of Foreign Investment in India
“The experience with foreign banks has been very mediocre as they have unwound business in India after their global operations took a hit,” said one of the persons cited above. “And, since insurance, especially life, is a long-term liability and the government will have little power over foreign-owned entities, it has to be very careful before taking such a call.”
enable the increased investment rate:
Foreign Direct Investments in any sector needs a check. In the Insurance sector, it needs to be stricter as a common man’s money will be at stake. Before implementation of this CAP all the policies regarding ownership and control should be checked by the Regulatory Authority. Once foreign investors come in the market the Government will have no control over it. Implementation of this rule will bring strong completion in the market. The common man can benefit from this competition.
Deepti is a Law graduate with an avid interest in reading and very proficient in summarizing legal cases. She has enough experience in handling legal affairs of the company. In the initial days of her career, she has worked as a legal researcher and has 3+ years of experience.
Black money has been the subject of heated political debate in India for a long time. Successiv...
The Apex Court pronounced a judgement in the case titled Tata Motors Vs The Brihan Mumbai Elect...
Since economies are moving towards digitalisation and making it feasible to conduct transaction...
The Alternative Investment Funds (AIFs) Pro-rata and Pari-Passu Rights Proposal Consultation Pa...
The Financial Action Task Force, i.e. FATF (the Force), is the global money laundering and terr...
Advance tax refers to the payment of the tax liability before the end of the relevant financia...
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Every assessee in India is obligated to file an income tax return and make the timely payment o...
In the recent past, India has seen burgeoning demand for internet and smartphones. The rapid ri...
Are you human?: 2 + 5 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Because its concept and application are difficult to understand, deferred income tax is one of the top ten causes o...
22 Feb, 2022
Introduction In India, all companies registered under the Companies Act 2013 or 1956 are required to file Annual re...
23 Nov, 2019
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!