- Increasing limit doesn’t mean automatic foreign investment to that level to all companies,’ Sitharaman clarifies
- Every company will decide for themselves, whether they want that money, to what extent & so on, she mentioned
Finance Minister Nirmala Sitharaman on Thursday clarified that the limit of 74% foreign direct investment (FDI) in the insurance companies is not a compulsion. Speaking in the Parliament, Sitharaman said, “FDI limit not a compulsion, it sets only upper limit.”
“Increasing limit doesn’t mean automatic foreign investment to that level to all companies. Every company will decide for themselves, whether they want that money, to what extent & so on. So, this enabling amendment is only to allow them to receive some money but not exceed 74%” she further explained. Rajya Sabha on Thursday passed Insurance (Amendment) Bill, 2021 to hike FDI in the insurance sector.
Source: livemint
