The offer to increase the limit of foreign direct investment to
49% has been refused by the Parliamentary Standing Committee on
Finance. Talking to media following an IMC event, Yashwant Sinha
said that Adjustments to the Bill is fixed on only one matter on
foreign direct investment. Also, the government's indisposition
to make out to opposition is holding back the revision.
"The government is not talking about it with us," he
said. "The insurance Bill regrettably is fixed on only one
topic on whether FDI should be 26% or 49%. It is likely to have a
way out. We will inform the government when they attain out to us.
The proposal of advanced FII has not find passions with foreign
players, who are partners in India."
The Cabinet permitted revisions to the Insurance Laws, Bill, 2008,
including higher FDI of 49% while the standing committee on finance
had against any raise in FDI limits. . It is expected to be taken
up by Parliament for passage in the approaching Budget Session. The
bill was first brought in Rajya Sabha in December 2008 offers to
boost the foreign direct investment (FDI) limit in the cover sector
to 49 per cent.
Higher foreign institutional investors in insurance companies
would not resolve the capital problems of sector. Though, it would
lend a hand some big companies to temper stake throughout the
public listing.
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