Continuing the financial sector reforms initiated in 1990, the government Monday announced the introduction of a series of legislations that would increase the foreign direct investment (FDI) in the insurance, pension and banking sectors.
Presenting his sixth budget and the country's 80th, Finance Minister Pranab Mukherjee said the financial sector reforms initiated in 1990s gave good results and he proposes to move forward on that. The insurance legislation would increase the FDI limit to 49 percent from the current 26 percent.
The LIC bill would increase the share capital of Life Insurance Corporation (LIC) to Rs.100 crore from its current Rs.5 crore. Mukherjee said the government proposes to move Insurance Laws (Amendment) Bill, Pension Fund Regulatory and Development Authority (PFRDA) Bill, LIC Amendment Bill, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act and State Bank of India (Subsidiary Banks) Bill.
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