The rules are expected to allow foreign companies to raise the FDI through the FIPB route rather than the automatic route.
The central government and IRDAI (Insurance Regulatory and Development Authority of India) may soon introduce rules on ways in which foreign promoters can increase stakes in domestic insurance companies, according to a media report. The new norms are expected to determine the manner in which foreign promoters can raise stakes by raising fresh equity shares, the report added. The rules are expected to allow foreign companies to raise the FDI through the FIPB (Foreign Investment Promotion Board) route rather than the automatic route, the report further said. The Insurance Laws (Amendment) Ordinance, 2014, will be taken up for consideration and passage in the current session of Parliament.