2021
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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85%
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49%
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100%
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74%
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Detailed explanation-1: -“FDI up to 20% under the automatic route is allowed in LIC, ” said a person cited above privy to the development. The reform in the FDI policy will facilitate foreign investment in LIC and such other bodies corporate, for which the government may have a requirement for disinvestment purposes.
Detailed explanation-2: -The regulator may allow 100% FDI in new lines of insurance business to expand the scope of the sector. At present, the upper limit for FDI is 74% into companies that write insurance cover.
Detailed explanation-3: -Because the current FDI policy limits foreign inflows to 20 per cent for public sector banks with government permission, it has been agreed to allow foreign investment of up to 20 per cent for LIC and other corporate entities.
Detailed explanation-4: -Parliament on 22 March 2021 passed the Insurance Amendment Bill 2021 to increase the foreign direct investment (FDI) limit in the insurance sector to 74% from 49% in an attempt to attract more overseas insurance players to India.
Detailed explanation-5: -FDI up to 74% under automatic route shall be permitted for companies seeking new industrial licenses.