Supporting governments move to amend Insurance Laws
(Amendment) Bill, 2008, a 15-member Select Parliament Committee recommended a
composite foreign investment cap of 49 per cent in the insurance sector.
“The committee recommends that the composite cap of
49 per cent should be inclusive of all forms of foreign direct investment and
foreign portfolio investments,” said the report tabled in the Rajya Sabha.
At present, a limit of 26 per cent is allowed only
through the FDI route.The Government is likely to bring the Bill for
consideration of the Upper House as early as next week.
The panel, headed by Rajya Sabha MP Chandan Mitra,
has suggested inclusion of a person from the insurance industry in the
Securities Appellate Tribunal as an expert. It has recommended suitable
amendment to the Securities and Exchange Board of India Act for the inclusion.
The panel also recommended that penalties on
insurance companies be linked to seriousness of offences committed by them. It
has suggested mechanism to ensure that there is minimum scope for subjective
interpretation.
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