Max India, RCap stocks rise on parliamentary panel nod to 49% FDI limit in insurance

The Max India stock rose on Wedenesday on reports that a Parliamentary committee has recommended a composite cap of 49 per cent on foreign investment in insurance in a report tabled in the Rajya Sabha on Wednesday.

At 12:29 pm, the Max India stock rose 6.25 per cent. The stock closed 5.34 per cent higher.

Other stocks related to the insurance sector such as Reliance Capital and Aditya Birla Nuvo rose 4.34 per cent and 0.71 per cent, respectively.

The select committee report said that the cap on foreign investment in insurance include foreign direct investment and foreign portfolio investments.

After getting a favourable recommendation from the panel that includes members from all major political parties, the government is likely to bring the Bill for consideration of the Upper House as early as next week.

The Insurance Laws (Amendment) Bill, 2008, proposes to increase FDI limit in the insurance sector to 49% from the existing 26%.