Government proposes higher foreign direct investment in insurance

Feb 1, 2021

By: BI India Bureau

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

Credit: BCCL

Global investors were demanding a hike in the investment cap

49 percent does not allow them to have management control

Credit: Unsplash

Foreign insurance players can now have management control

FM Nirmala Sithraman proposed the amendment to the Insurance Act

Credit: Unsplash

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

Credit: Unsplash

This move will help insurers attract more capital.

More capital will help the companies expand business.

Credit: Unsplash

HDFC Life Insurance share price is up by 1.78 percent

At Rs690 per share as of 12:30 pm

Credit: ET

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

Credit: ET

ICICI Lombard General Insurance is up by 1.39 percent

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

Credit: ET

SBI Life Insurance has also surged by 1.94 percent

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

Credit: ET

Stock markets to remain shut for Ram Navami today amid a volatile week in the equity markets