Which of the following statements is/are correct with reference to the Insurance sector?
A. Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act.
B. The insurance Act has been amended recently to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.
C. Both A & B
D. None of these
Explanation:
Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act. This follows the recent amendments to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%. This new norm will apply to all insurers, irrespective of the stake held by the foreign partner.
