FIPB okays five insurance pleas, Yes Bank request
The Foreign Investment Promotion Board (FIPB) on Monday cleared 16 FDI proposals worth Rs 14,000 crore including that of Japan's Nippon hiking stake in Reliance Life Insurance to 49 per cent, as also that of four other foreign insurers.
The FIPB also approved the proposal of Yes Bank to hike foreign investment limit to 74 per cent, from present 41 per cent-- making it the first bank to get approval for hiking FDI limit after the new regulations were announced in November.
"The FIPB today (Monday) approved 16 foreign direct investment proposals, out of the 34 on agenda," a source said. FIPB, chaired by Economic Affairs Secretary Shaktikanta Das, also cleared Sun Life Financial Investments Inc's proposal to hike stake in Birla Sunlife Insurance company to 49 per cent.
The proposal of Japan's Nippon Life Insurance to acquire another 23 per cent stake in Reliance Life Insurance was also cleared by the Board. Nippon currently holds 26 per cent in Reliance Life.
Also Yes Bank's proposal to hike FDI limit was cleared by the Board, the source said.
In November 2015, the government had removed sub-limit restrictions for foreign investments in private sector banks within the overall sectoral limit of 74 per cent. In the private banking sector, the government has introduced full fungibility of foreign investment and accordingly, "FIIs/FPIs/QFIs, following due procedure, can now invest up to sectoral limit of 74 per cent, provided there is no change of control and management of the investee company", the government had said.
FIPB also cleared the proposal of Aviva Life Insurance and Raheja QBE General Insurance Company to hike foreign investment limit in their respective companies to 49 per cent.