‘Govt can ask for more FII in insurance’
Two questions. First, are you open to allowing 23% for FIIs/OCBs, etc? Two, how are firms to find the capital to grow if you don’t allow 49% FDI?
The government can come to the Standing Committee with this; it hasn’t so far. That’s when we will decide.
But will you clear it?
I cannot answer a hypothetical question from the media. Let the government ask the Standing Committee.
And the funds?
We had detailed discussions with the IRDA and no one was able to show us why we needed 49% FDI. The bill, as it stands, commits to Indian promoters diluting to 26% after 10 years, so firms can get funds from the market if they need to. In any case, as far as Indian company law is concerned, there is no difference between 26% and 49% as far as control is concerned. So the only issue is of ability to raise funds, and no one has been able to convince the Standing Committee that increased FDI is the only way out.
You’ve said somewhere that after the global financial crisis, everyone is looking at financial sector reforms differently.
Yes.
But shouldn’t this apply to, say, complex derivatives that few understand, and not to
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