Millennium Post

FIIs, NRIs allowed to invest in selected insurance activities

The uniongovernment allowed 26 per cent foreign investment in activities related to insurance like broking, third party administrators and surveyors and permitted foreign institutional investor (FIIs) and non-resident Indians (NRI) to also invest in insurers within the stipulated cap on Wednesday.

In case of insurance companies, the 26 per cent cap will include foreign direct investment (FDI) and investments from FIIs and NRIs, said a Department of Industrial Policy and Promotion (DIPP) Press Note.

Earlier, only FDI under the automatic route was allowed in insurance companies. This relaxation falls short of the demand of insurance industry which has been pleading for hiking the FDI cap in the sector to 49 per cent, from 26 per cent at present. The Insurance Laws Amendment Bill, which seeks to raise the cap, has been pending in Parliament since 2008 and is unlikely to be taken up in the ongoing session due to lack of political consensus. Under the norms notified, 26 per cent foreign investment including FDI, FII and NRI will be allowed under the automatic route in insurance companies, insurance brokers, Third Party Administrators (TPAs), surveyors and loss assessees.

NSE to implement risk reduction mode for currency derivatives

Country’s premier stock exchange NSE has decided to implement the risk reduction mode for its currency derivative segment from 10 February.

According to NSE, members would be ‘compulsorily’ placed in risk reduction mode when 95 per cent of the member’s capital is utilised towards margins.
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