Insurance (WT/TPR/S/249, p. 151, para.101; and p.153, para.108)
We note that in recent years, the Indian authorities have attempted to raise the foreign equity limit in an Indian insurance company from 26% to 49%, and introduce flexibility to raise capital through other forms instead of through equity alone. We are interested in knowing the time frame of their implementation. Separately, we would like to know if there are any other concrete proposals to increase private sector investment from foreign investors and whether there have been obstacles to such attempts.
Reply: The Government had introduced the Insurance Laws (Amendment) Bill, 2008 in the Parliament on 22.12.2008. The Bill, inter alia, provides that the aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees in Indian Insurance Companies may be increased from 26% to 49% except in case of insurance co operative societies where the limit would continue to be 26% as at present.
