News - India: Plan to raise FDI cap rejected
Source: Asia Insurance Review | Jan 2012
A proposal to increase the limit on foreign direct investment (FDI) in insurers to 49% from 26% has been rejected by a panel of Indian lawmakers.
The plan was first raised by the government under Prime Minister Manmohan Singh through the introduction of the insurance Laws (Amendment) Bill in 2008, but was pending mainly due to opposition from various parties.
This move means the insurance industry will have to look for alternative methods of raising funds.