NRIs, FPIs Can Invest Upto 26 Percent In Interest: RBI
BANGALORE: For long, FDIs has created a space for debate in the business world and made the government rework and rethink over the issue. Recently Reserve Bank of India has come up with allowance of 26 percent investment in insurance sector. AS reported by PTI. Overseas investors, like Foreign Portfolio Investors and Non-Resident Indians,
can invest up to 26 percent in insurance and related activities like broking, third party administrators and surveyors through the automatic route, which was earlier not allowed. The insurance companies will attract FDI, and investments from Foreign Institutional Investors and Non-Resident Indians, as mentioned in DIPP press note.
The companies before making any investment and involving in activities, it will have to procure a license from the Insurance Regulatory and Development Authority to get an approval.
For most of the investors, to allow FDI is welcoming and is happy with the government’s decision. But most of the investors are backing an increase of up to 49 percent in the sector to increase the cash flow, which can come in billions into the life and non-life insurance businesses if the government agreed upon increasing the FDI percentage.
The bill formed to back the raise of FDI in insurance sector is still pending in parliament and awaits the government nod, as earlier under the UPA government, is failed to gain support from the BJP had left parties had an objection to it.
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