The Cabinet has approved the hike in FDI limit for Insurance companies from 26% to 49% with a rider that the FDI hike beyond 26% shall be approved through FIPB route and the management control will remain in the hands of Indian promoters. This approval is expected to attract long term capital for Insurance companies besides improving the overall investment climate.
The bill will now be taken up by Parliament for further approval. However, the proper clarity on the interpretation of ‘control by Indian promoter’ is awaited. The major companies that are likely to benefit from hike in FDI limit include Max India and Reliance Capital.
Government clears 19 FDI proposals worth Rs 23.27bn
The government has approved 19 proposals for foreign investment totalling about Rs 23.27bn, with Walt Disney leading the pack with an intended capital infusion of Rs 11.00bn in UTV Software.
Reckitt Benckiser (India) has got the go ahead to acquire 23.72% paid-up share capital of Reckitt Benckiser Healthcare India from its Reckitt Benckiser (Singapore) Pte Ltd for Rs 7.25bn. The approved proposals include three for single-brand retail, including one by jewellery and luxury goods maker Bulgari International.
U.S. New Home Sales Pull Back More Than Expected In June
New home sales in the U.S. showed a notable decrease in the month of June with the steep drop offsetting the jump seen in the previous month. The new home sales tumbled 8.1% to an annual rate of 406,000 in June from the revised May rate of 442,000.
Eurozone Private Sector Rebounds In July
The Eurozone private sector growth rebounded at the start of the third quarter from a six-month low as strong expansion in Germany neutralized the contraction in France. The flash composite output index rose to 54 in July to match April’s three-year high level, flash survey data from Markit Economics showed Thursday.