Par panel to soon give recommendation on Insurance Bill: Finmin | india | Hindustan Times
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Par panel to soon give recommendation on Insurance Bill: Finmin

india Updated: Mar 03, 2011 00:47 IST

The finance ministry on Wednesday said that the Parliamentary panel is expected to give recommendations soon on the insurance amendment Bill, which seeks to enhance FDI limit in the sector to 49 per cent from 26%.

"On the insurance amendment Bill, the standing committee of Parliament is expected to give its final recommendation shortly," Department of Economic Affairs secretary R Gopalan said at an International Institute of Finance event here.

He said that it will be placed in Parliament along with the LIC Amendment Bill.

"LIC amendment Bill recommendations are with us at this point of time. When the other one is also received, we will be in position to take them forward to the Cabinet, to the Parliament for passing," he added.

The Insurance Bill was introduced in the Rajya Sabha in December 2008 under the first UPA government, by the then finance minister P Chidambaram, as part of its financial sector reforms.

On Tuesday, finance minister Pranab Mukherjee asked India Inc to convince Opposition on the need for passing important financial sector legislations, including the Insurance Bill, in the current session of Parliament.

Mukherjee proposed in the Budget to take up for passage six Bills -- Insurance Laws (Amendment), Life Insurance Corporation (Amendment), the Revised Pension Fund Regulatory and Development Authority, Banking Laws Amendment, Bill on Factoring, Bill to Amend RDBFI Act and SARFAESI Act.

Mukherjee had said India can send a strong signal to international investors by adopting reforms by passing the Insurance Bill.

On the PFRDA Bill, Gopalan said that earlier the standing committee had a look at it and given its recommendations.

"The Parliament will take a call whether they would refer it back to the Standing Committee or not. The PFRDA bill ensure that the PFRDA get a statutory existence," he added.

In the Banking Law Amendment Bill, one of the important items would be to see how voting rights can go up according to the shares held by the equity holder.

Talking out corporate bond market, Gopalan said that there is unfinished agenda in the segment and the Government is attending to it.