New Delhi,The Government had introduced the Insurance Laws (Amendment) Bill, 2008 in the Rajya Sabha on Dec,22.2008. The Bill, inter-alia, provides for holding of equity shares in Indian insurance companies by a foreign company, either by itself or through its subsidiary companies or its nominees to not exceed forty-nine percent of paid up equity capital. An increase in foreign equity share limit in insurance sector will potentially enable additional capital flows into the sector.
Assessing and obtaining stakeholders' views through various means is a regular feature of Government functioning, including in the insurance sector. This information was given by the Minister of State for Finance, Smt. Nirmala Sitharaman in written reply to a question in Lok Sabha today.