The Finance Minister has proposed a hike in the Foreign Direct Investment (FDI) limit in the insurance sector from 49% to 74%.
This seems to be one of the key announcements in the budget. The share prices of HDFC and ICICI Pru Life up by 4% and SBI life increased by 3.25% after the proposal.
The FM hinted the same in the budget for the year 2019-20. The proposal will also allow Foreign ownership and control. the move will help smaller insurance companies.