Irda against FIIs owning 23% in private insurers

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SummaryIRDA chairman J Harinarayan said that he strongly endorsed a hike in the foreign investment limit in insurance companies to 49% from the current 26% through the FDI route, instead of allowing FIIs to pick up to 23% in private insurers.

IRDA chairman J Harinarayan said that he strongly endorsed a hike in the foreign investment limit in insurance companies to 49% from the current 26% through the FDI route, instead of allowing FIIs to pick up to 23% in private insurers. This is what the Insurance Laws (Amendment) Bill also proposes.

The draft Bill proposes 49% FDI. FII by nature is slightly more volatile than FDI and, in insurance, it is not desirable, he told reporters after a Ficci conference.

There is hectic speculation that the government may dilute the clauses in the insurance Bill to allow FIIs to pick up 23% in private insurers, as an option to raise their foreign investment limit to 49%.

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