Cabinet touches proposal of 49% FDI in pension & insurance

According to the sources, the finance ministry has sent a final cabinet note which proposes 49% FDI in both these sectors. Some months back the same proposal on insurance was sent to the cabinet which retained 26% FDI in insurance sector but the then finance ministry later admitted that retaining 26% FDI in insurance does not make sense.

It now looks that the finance ministry has made up its mind on 49% cap for both the insurance and pension sector.

The cabinet secretariat is likely to slot when both these proposals will be taken up by the cabinet headed by Prime Minister Manmohan Singh. Officials of the finance ministry expect that both these bill will be tabled in the monsoon session of the Parliament itself.

The finance ministry has made up its mind on 49% FDI cap in both these sectors and there are pretty sure of gaining support for both these bills in the Parliament at the executive level.

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