RISK: Indian insurance reforms push through lower parliament

Foreign investment cap in Indian insurers upped to 49 percent

The lower house in India’s parliament passed a bill to allow up to 49 percent of investments in local insurers to come from foreign sources. This is nearly doubles the current limit of 26 percent.

Prime Minister Narendra Modi pushed this legislation through on an executive order in December but that only lasts six months. If the upper house, which is controlled by opposition parties, doesn’t pass the bill before the current session ends in May, Modi would have to reissue the ordinance.

Keep an eye out for the Spring 2015 issue of Corporate Risk Canada — we’re featuring a story on investing in India.

 

Photo by Premshree Pillai

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Transcontinental Media G.P.