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Parliamentary panel suggests 26% cap on foreign equity in insurance

The Parliamentary Standing Committee on Finance today decided in favour of capping foreign equity in insurance companies at 26 per cent and abolishing the additional 14 per cent stake proposed for non-resident Indians, informed sources said.

The Insurance Regulatory Authority Bill was referred to the committee in the winter session of Parliament.

The bill was introduced in the Lok Sabha amidst chaos. It provided for 26 per cent foreign equity and an additional 14 per cent to be shared by NRIs, overseas corporate bodies, and foreign institutional investors.

The committee will table its report in the current Budget session of Parliament, the sources said.

The parliamentary committee has also favoured reducing the phase-out period of domestic equity from 10 to six years. It has also prescribed a minimum investment limit of Rs2000 million, instead of Rs1,000 million.

Some members are expected to give a note of dissent. Congress MP from South Bombay Murli deora is chairman of the committee.

UNI

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