The Indian government’s decision to increase the Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100% has drawn attention to key stocks like SBI Life, HDFC Life, and ICICI Lombard.
Finance Minister Nirmala Sitharaman made the announcement following the Union Finance Ministry’s consultation paper in November 2024. This move, which builds on the 2021 FDI increase from 49% to 74%, aims to attract more global investments and boost growth in India’s thriving insurance industry.
“In this regard, a comprehensive review of the legislative framework governing the sector has been conducted in consultation with the Insurance Regulatory and Development Authority (IRDAI) and the industry. The proposal includes raising the FDI limit in Indian insurance companies from 74 per cent to 100 per cent, and enabling an insurer to carry on one or more classes of insurance business, as well as activities related or incidental to insurance,” an office memorandum dated November 26 stated.
As of 11:54 AM, SBI Life shares were trading at 1.17% higher at Rs 1505.00. HDFC Life shares were trading 1.83% higher at Rs 649.65. ICICI Lombard shares were trading 1.07% higher at Rs 1878.70.
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