The Finance Ministry is looking at ways in which private insurance companies can be allowed to raise more funds without hiking the foreign direct investment cap in the sector to 49 per cent.
“Now we have to look afresh on this (insurance sector) ...whether there could be some other instrument (to permit private companies to raise funds) without raising (FDI cap) to 49 per cent. All these issues we have to address and then come back to the government,” Financial Services Secretary G. S. Sandhu said.
He spoke to reporters after making a presentation to Finance Minister Arun Jaitley on issues related to the banking and insurance sector.
Observing that no decision was taken at the meeting, Sandhu said, “We have to examine a few issues on what are the other options available to attract capital. Whether there are other options available, whether we could go in a more gradual manner. So we have to look at some other options. We are not ruling out. Neither are we saying yes nor no.”
