Cabinet clears FDI in insurance, pension sector

The Cabinet has today cleared proposals to allow more Foreign Direct Investment in the insurance and pension sectors. The government has proposed allowing 26 percent foreign direct investment in the pension sector and raising the foreign direct investment (FDI) limit in insurance joint ventures to 49 percent. In addition, the cabinet has also approved the Companies Bill, 2011. The move on FDI in pension and insurance will need Parliamentary ratification as they are governed by an act of law and not an executive domain.