FDI cap in pension linked to FDI cap in insurance

In the latest move to restore confidence in the flagging economy, the cabinet today cleared financial sector reform bills seeking to hike foreign direct investment to 49 per cent from 26 per cent in the insurance sector and opening up of the pension sector to 26 percent FDI allocation. Briefing mediapersons over the measures, Finance Minister P Chidambaram said that if the FDI cap in insurance is approved at 49 per cent, then that in pension will also be 49 per cent.The minister said that the cabinet also approved amendments to Insurance Bill, 2008.