IRDA rules out liberal FDI norms in SEZs
"What IRDA has recommended is 49%... we can't have a separate SEZ insurance company," said the Chairman.
By PTI |
NEW DELHI: Insurance regulator IRDA on Thursday ruled out any special provisions, including increased FDI limits, for Special Economic Zones.
"There is no need for higher FDI limit in SEZs. Whatever is there, should be applicable for the whole country," Insurance Regulatory Development Authority chairman C S Rao told reporters on the sidelines of a seminar here.
"SEZs are very small clusters and there is no need to treat them separately," he said.
Rao said the country had good insurance service providers and the world's major players were also already present.
"We have good players and they are in a position to provide whatever services are required in SEZs," he said.
The insurance regulator denied that there was any move to allow 100 per cent FDI in these zones.
"What IRDA has recommended is 49 per cent... we can't have a separate SEZ insurance company," he said.
India at present allows 26 per cent Foreign Direct Investment in insurance services, although the government had plans to raise the limit to 49 per cent. However, the legislation to increase the limit has not been passed yet.
"There is no need for higher FDI limit in SEZs. Whatever is there, should be applicable for the whole country," Insurance Regulatory Development Authority chairman C S Rao told reporters on the sidelines of a seminar here.
"SEZs are very small clusters and there is no need to treat them separately," he said.
Rao said the country had good insurance service providers and the world's major players were also already present.
"We have good players and they are in a position to provide whatever services are required in SEZs," he said.
The insurance regulator denied that there was any move to allow 100 per cent FDI in these zones.
"What IRDA has recommended is 49 per cent... we can't have a separate SEZ insurance company," he said.
India at present allows 26 per cent Foreign Direct Investment in insurance services, although the government had plans to raise the limit to 49 per cent. However, the legislation to increase the limit has not been passed yet.
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