Insurance Companies (Foreign Investment) Amendment Rules enter into force internationallawoffice.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from internationallawoffice.com Daily Mail and Mail on Sunday newspapers.
Introduction
For several years, stakeholders in the Indian insurance sector have wanted the foreign direct investment (FDI) limit for Indian insurers to be increased to 74% in parity with the FDI limit applicable to the private banking sector. On 1 February 2021, pursuant to the central budget speech for the financial year 2021-2022, the finance minister announced that the FDI cap for Indian insurers will be increased from 49% to 74%. In addition, it was announced that under the new framework:
foreign ownership and control would be allowed with safeguards;
the majority of directors on an insurer s board of directors and key management persons would be required to be resident Indians;
DHFL race: Piramal holds edge over Oaktree due to higher upfront cash, insurance tangle for foreign firms
Piramal Enterprises offers at least Rs 1,000 crore higher upfront payment than US asset manager Oaktree for DHFL in fourth round of auction. India’s FDI laws complicate Oaktree bid as DHFL has an insurance business.
DHFL (File Image: PTI)
Ajay Piramal-led Piramal Enterprises has edged out rival suitor Oaktree Capital in the auction to purchase the assets of Diwan Housing Finance Ltd (DHFL) by submitting the highest upfront cash payment, the bidding proposition preferred by the bankrupt company’s lenders.
Piramal Enterprises, a diversified conglomerate, offered Rs 12,700 crore as cash upfront trumping the Rs 11,646 crore offer from American asset manager Oaktree, multiple persons familiar with the matter told Moneycontrol. Piramal and Oaktree trumped Adani Properties, the remaining suitor in the fray, in the fourth round of bids on Monday.