REUTERS REPORTED MINUTES AGO, AS FOLLOWS
The cabinet approved bills for foreign investment in insurance and pensions on Thursday in the latest move by Prime Minister Manmohan Singh to restore confidence in the flagging economy, but the reforms will face a tough fight in parliament.
Under the bills cleared by the cabinet, the cap on foreign money in insurance companies would rise to 49 percent, Sports Minister Ajay Maken told reporters after the cabinet meeting at Singh's residence. He did not give details of the pension bill.
ECONOMIC TIMES REPORTED AS FOLLOWS :
Signaling the government's intent to continue with reforms to boost economic growth and investor sentiment, the Cabinet on Thursday cleared all amendments to the insurance bill. In a major move the cabinet approved allowing 49% Foreign Direct Investment (FDI) in insurance.
The cabinet also cleared the Pensions Bill and allowed FDI in Pension Funds. Upto 26% FDI in the pension sector will now be permissible.
Commenting on the development, Bharti-AXA Insurance expressed hope that the changes to the insurance bill will be approved in the winter-session of the Parliament. Deepak Sood of Future Generali was of the opinion that post the announcement, all foreign insurers would want to hike their stake in he joint venture.
However, Bibek Debroy of Centre for Policy Research told ET Now that he was not sure whether these bills would be passed in Parliament.
Hitting out at the government, Saugata Roy of TMC said that most political parties will find it difficult to support these measures.
BUSINESS STANDARD REPORTED AS FOLLOWS
The Cabinet today cleared financial sector reform bills seeking to hike foreign direct investment to 49 per cent from 26 per cent in the insurance sector and opening up of the pension sector (26%). Besides, it approved Companies Bill also.
The bills will now go to Parliament where the UPA government will need the help of the Opposition to pass them, at least in the Rajya Sabha.
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