The decision which has been pending since May 10th this year and which had once been rejected by the Standing Committee in December 2011 finally goes in favor of the insurance companies. In its latest report Government seems optimistic in raising the Foreign Direct Investment (FDI) limit in the insurance sector to 49% from its existing 26%. As per the current regulation a foreign player can have a maximum of 26% stake in the insurance companies. This change of almost doubling the FDI limit is seen as a need to give a push to the reforms laid out by the Government this year.
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