Through the Foreign Investment Promotion Board (FIPB), the Cabinet however ensured that management control will remain with Indian promoters.
This move is likely to enable insurance entities to get much needed capital from international partners.
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Indian finance minister Arun Jaitely earlier advocated increase in FDI limit in the sector during his first budget speech.
The proposal to raise FDI cap has been pending since 2008 when the previous government came up with Insurance Laws (Amendment) Bill to hike foreign holding in insurance joint ventures (JVs) to 49%.
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