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Big bang reforms: Cabinet approves 49% FDI in insurance, 26% in pension sector
Clean Media Correspondent
NEW DELHI, Oct 04 (CMC) After opening up the multi-brand retail sector to foreign direct investment, the Union Cabinet on Thursday has cleared the the way for higher FDI in pension and insurance sectors. However, foreign investors would not be able to gain controlling shares of pension and insurance providing companies with the cap being fixed at 49 per cent for insurance sector and 26% for pension sector.
It is not clear though whether the main opposition party the BJP will back it despite its earlier support on reforms in this sector. The move to liberalize the insurance sector could face opposition from the BJP. Parliament's standing committee on finance headed by BJP's Yashwant Sinha had recommended that FDI be capped at 26%.
The government's move to link the FDI cap here with insurance could jeopardize BJP's support on pension reforms.
Big bang reforms: Cabinet approves 49% FDI in insurance, 26% in pension sector
Clean Media Correspondent
NEW DELHI, Oct 04 (CMC) After opening up the multi-brand retail sector to foreign direct investment, the Union Cabinet on Thursday has cleared the the way for higher FDI in pension and insurance sectors. However, foreign investors would not be able to gain controlling shares of pension and insurance providing companies with the cap being fixed at 49 per cent for insurance sector and 26% for pension sector.
It is not clear though whether the main opposition party the BJP will back it despite its earlier support on reforms in this sector. The move to liberalize the insurance sector could face opposition from the BJP. Parliament's standing committee on finance headed by BJP's Yashwant Sinha had recommended that FDI be capped at 26%.
The government's move to link the FDI cap here with insurance could jeopardize BJP's support on pension reforms.
The government is doing wonderfully well with the Mulayam's support!
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