Government proposes higher foreign direct investment in insurance

FDI in insurance increased to 74 percent from 49 percent in Budget 2021-22

Global investors were demanding a hike in the investment cap

49 percent does not allow them to have management control

Foreign insurance players can now have management control

FM Nirmala Sithraman proposed the amendment to the Insurance Act

At least 50 percent of board members will be independent directors

And a higher portion of the profit is to be set as general reserve

This move will help insurers attract more capital.

More capital will help the companies expand business.

HDFC Life Insurance share price is up by 1.78 percent

At Rs690 per share as of 12:30 pm

ICICI Prudential Life Insurance saw a massive jump of 3.51 percent

It is currently trading at Rs.497.90 apiece as of as of 12:30 pm

ICICI Lombard General Insurance is up by 1.39 percent

At Rs.1333.75 per share as of 12:30 pm

SBI Life Insurance has also surged by 1.94 percent

It is trading at Rs.881.20 per share as of 12:30 pm