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IRDA for raising foreign equity cap in insurance

Print Email Discuss Share Save Comment Text:KOLKATA:

The Insurance Regularity and Development Authority (IRDA) would favour raising the foreign equity cap in the Indian insurance sector
from existing 26 per cent if the Indian promoters fail to enhance the capital base required to sustain high growth.

‘‘We feel that as the business grows, the capital base has to be increased. If the Indian players don’t bring additional funds
, the government has to raise the foreign equity cap,’’ IRDA chairman C S Rao said on Saturday.

Maintaining that the Indian insurance industry already has the presence of major foreign players, he said, ‘‘The IRDA will favour increasing the equity cap for foreign insurance companies
to enhance the capital base.’’