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Shares of companies having insurance subsidiaries were trading higher on the bourses after the Upper house of parliament passes insurance bill that proposes increase in insurance FDI limit to 49%.
Max India, Reliance Capital, Aditya Birla Nuvo, Exide Industries, Bajaj Finserv, ICICI Bank and Edelweiss Financial Services were up 2-6% on the National Stock Exchange (NSE).
The Bill, already passed by the Lok Sabha, seeks to increase the cap on foreign direct investment (FDI) in the insurance sector from 26% to 49%. CLICK HERE TO READ FULL REPORT
The government's move to increase FDI limit will benefit private sector insurance companies, which require a huge amount of capital.
For the insurance industry the passing of the bill will help in putting in place a more progressive regulatory framework. The FDI/FPI limit increase will lead to capital inflows which could be used to expand distribution and to invest technology and service infrastructure, said Deepak Mittal, MD & CEO, Edelweiss Tokio Life Insurance.
Among the individual stocks, Max India has rallied 6% to Rs 520 in early morning trading, extending its previous day’s 5% gain on the NSE.
Bajaj Finserv was up 5% at Rs 1,552, followed by Reliance Capital (up 4% at Rs 510), Edelweiss Financial Services (4% at Rs 72), Exide Industries (3% at Rs 197) and Aditya Birla Nuvo (2% at Rs 1,706).
Max India, Reliance Capital, Aditya Birla Nuvo, Exide Industries, Bajaj Finserv, ICICI Bank and Edelweiss Financial Services were up 2-6% on the National Stock Exchange (NSE).
The Bill, already passed by the Lok Sabha, seeks to increase the cap on foreign direct investment (FDI) in the insurance sector from 26% to 49%. CLICK HERE TO READ FULL REPORT
The government's move to increase FDI limit will benefit private sector insurance companies, which require a huge amount of capital.
For the insurance industry the passing of the bill will help in putting in place a more progressive regulatory framework. The FDI/FPI limit increase will lead to capital inflows which could be used to expand distribution and to invest technology and service infrastructure, said Deepak Mittal, MD & CEO, Edelweiss Tokio Life Insurance.
Among the individual stocks, Max India has rallied 6% to Rs 520 in early morning trading, extending its previous day’s 5% gain on the NSE.
Bajaj Finserv was up 5% at Rs 1,552, followed by Reliance Capital (up 4% at Rs 510), Edelweiss Financial Services (4% at Rs 72), Exide Industries (3% at Rs 197) and Aditya Birla Nuvo (2% at Rs 1,706).
