Sinha keeps line open on retail FDI
While Sinha insists his party will not go along with hiking FDI limits in insurance to 49% — he says no one was able to convince the standing committee as to why this was needed — he offered a ray of hope. When asked whether the BJP would be amenable to allowing a separate 23% equity holding window for FIIs or overseas corporate bodies (essentially NRIs) — this was part of Sinha’s insurance bill that, ironically, the Congress diluted — he said the government had not yet come up with this formulation. When asked if the standing committee would agree to this formulation if it was brought before it, he said a comment could be given only after the proposal was brought, signalling some negotiating room for the government.
As far as amendments to the Banking Regulation Act are concerned, critical if RBI is to start processing applications
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