The finance ministry today gave its approval to 15 foreign direct investment proposals, including that of Japanese insurer Nippon Life Insurance, Tata AIA and Aviva Life, involving total FDI inflows of Rs7,262 crore. The approvals have been granted on the recommendations of the Foreign Investment Promotion Board (FIPB).
Besides, the proposal of Yes Bank to hike foreign investment limit to 74 per cent from existing 41.87 per cent without any sub-limits has been referred to the Cabinet Committee on Economic Affairs (CCEA).
''Based on the recommendations of the Foreign Investment Promotion Board (FIPB) in its 232nd meeting held on 7 March 2016, the government approved 15 foreign direct investment (FDI) proposals, involving FDI of Rs7,261.6 crore and recommended one proposal, involving FDI of Rs6,885 crore, for approval of CCEA,'' a finance ministry release stated.
The board also approved the proposal of Taurus Ventures for issuance of shares to the shareholders of Max India pursuant to a demerger of Max India Ltd.
Nippon Life's proposal to hike its stake in Reliance Life Insurance from 26 per cent to 49 per cent for Rs 2,265 crore was approved by the board.
Also, Tata AIA Life Insurance Company's proposal to increase AIA International's stake from 26 per cent to 49 percent for Rs2,055 crore was also cleared by the board.
Besides, Aviva Life Insurance's Rs940-crore proposal to hike Aviva International's stake to 49 per cent was cleared.
"FDI inflow continues. Fast clearances make a difference," economic affairs secretary Shaktikanta Das tweeted.
Birla Sun Life Insurance Company's proposal worth Rs1,664 crore for hiking foreign equity in the company to 49 per cent was also approved.
Raheja QBE General Insurance Co's Rs102 crore proposal for transfer of 23 per cent shares held by Prism Cement to Hong Kong's QBE Asia Pacific Holdings and thereby increasing foreign shareholding to 49 per cent also got the nod.
The FIPB, headed by the economic affairs secretary can approve foreign investment proposals of up to Rs5,000 crore.