Insurance Stocks Mixed After FDI Limit Hiked

  • Stock Market News
Insurance Stocks Mixed After FDI Limit Hiked
Credit: © Reuters.

By Aditya Raghunath -- Insurance stocks are trading mixed on the markets today after the Rajya Sabha passed a bill to increase FDI (foreign direct investment) in the insurance sector to 74% from 49%.

The rules state that a majority of directors and top personnel of these companies will have to be Indian. At least 50% of directors can be independent directors.

Union Minister Nirmala Sitharaman said, “Control means right to appoint majority of directors and key management to be resident Indians. Specific percentage of profits to be retained as general reserve. Laws of the land fairly mature, no one can kick it away and make us watch.” Other rules state that the companies cannot invest funds of policyholders outside India.

The news had broken after market hours yesterday and shares of HDFC (NS: HDFC ) Life Insurance Company Ltd (NS: HDFL ) and ICICI Prudential (LON: PRU ) Life Insurance Company Ltd (NS: ICIR ) fell more than 1% while SBI (NS: SBI ) Life Insurance Company Ltd (NS: SBIL ) gained 0.1%. Today, after markets opened, HDFC Life has been volatile and is currently up 0.18% after losing ground in early trade. SBI Life also lost ground after opening in the green and is currently down 0.5% while ICICI Pru Life is trading strong, up 1.28%.

March 2021 has been a rough month for insurance stocks as the markets have moved sideways.

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  • Vishnu VV @Vishnu VV
    Wondering why Pvt Inititution Life Insurance company shares have fallen since last Thursday/Friday. Now, this news answers the reason. Hopefully this wil set things right.
    Like 0

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