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Union Finance Minister Nirmala Sitharaman on Monday proposed to amend the Insurance Act 1938 to increase the permissible Foreign direct investment (FDI) limit from 49 percent to 74 percent in insurance companies and allow foreign ownership and control with safeguards.
During her budget speech, Finance Minister said: “I propose to amend the Insurance Act 1938 to increase the permissible FDI limit from 49 percent to 74 percent in insurance companies and allow foreign ownership and control with safeguards.”
She mentioned that the majority of the directors on the board of these insurance companies will have to be resident Indians.
“Under the new structure, the majority of directors on the board and key management persons would be resident Indians, with at least 50 percent being independent directors,” she said.
Prior to the budget presentation, the Union Cabinet approved the budget 2021-22 today. The Union Budget 2021-22 is being delivered in paperless form for the first time.
The budget speech began at around 11 am today.
Sitharaman tabled the Economic Survey tabled in Parliament on Friday.