The insurance units of ICICI Bank and HDFC would remain devoid of any benefits from raised foreign investment limit since the original groups are owned by foreign investors, the report said.
The Insurance Regulatory and Development Authority along with some private life insurers, have sought further information on the increased foreign investment limit from 26% to 49% as decided by the government.
As per the new regulations, “Foreign equity investment cap of 49% is applicable to all Indian insurance companies and they shall not allow the aggregate holdings by way of total foreign investment in their equity shares by foreign investors, including portfolio investors, to exceed forty-nine per cent of their paid-up equity capital and also shall ensure that ownership and control shall remain at all times in the hands of resident Indian entities as referred to in these rules”.
This has spelled confusion and a clear understanding of FDI norms is becoming hard to achieve, a report in ET stated.
The insurance units of ICICI Bank Ltd and Housing Development Finance Corp. Ltd(HDFC) would remain devoid of any benefits from raised foreign investment limit since the original groups are owned by foreign investors, the report said.
The ambiguity on this matter would also extend towards Indian firms having majority foreign ownership and insurance joint ventures, the report add.
The Insurance Regulatory and Development Authority along with some private life insurers, have sought further information on the increased foreign investment limit from 26% to 49% as decided by the government.
As per the new regulations, “Foreign equity investment cap of 49% is applicable to all Indian insurance companies and they shall not allow the aggregate holdings by way of total foreign investment in their equity shares by foreign investors, including portfolio investors, to exceed forty-nine per cent of their paid-up equity capital and also shall ensure that ownership and control shall remain at all times in the hands of resident Indian entities as referred to in these rules”.
This has spelled confusion and a clear understanding of FDI norms is becoming hard to achieve, a report in ET stated.
The insurance units of ICICI Bank Ltd and Housing Development Finance Corp. Ltd(HDFC) would remain devoid of any benefits from raised foreign investment limit since the original groups are owned by foreign investors, the report said.
The ambiguity on this matter would also extend towards Indian firms having majority foreign ownership and insurance joint ventures, the report add.
No comments:
Post a Comment