Insurance bill cleared
New Delhi: The Insurance Regulatory and Development Authority Bill has been cleared by the Union cabinet. The bill restricts foreign equity participation in Indian insurance companies to a maximum of 26 per cent of their paid-up capital. The privileges granted to the General Insurance Corporation and the Life Insurance Corporation so far by the GIC Act and LIC Act will be suitably amended.

In the meantime, the General Insurance Corporation has asked the government to ensure that the new private companies entering the general insurance sector obtain a no-objection certificate from it before they reinsure risks abroad.
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RBI changes rights norms for NRIs
Mumbai: Companies can issue rights and bonus shares to non-resident Indians without seeking permission from the Reserve Bank of India. This is provided the issue does not change the shareholding composition for foreign equity as approved by the Foreign Investments Promotion Board. The issue should be made at the same price at which it is made to the general public.

This permission is applicable only for those issues where the company’s original project cost as approved by the FIPB is not more than Rs.600 crore.
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RBI refuses retail licence to KSIIDC
Bangalore: The Karnataka State Industrial Investment Development Corporation’s proposed entry into the insurance sector may be in jeopardy as the Reserve Bank of India has denied it the retail banking licence. KSIIDC says the RBI may review the decision.

KSIIDC has appointed management consulting firm PricewaterhouseCoopers to prepare a restructuring plan. It had earlier planned to enter the insurance sector with the help of its branch network in Karnataka.
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Truck operators to strike work
New Delhi: As a protest against the diesel price hike, truck operators throughout the country will go on strike from 21 October. They decided to go on strike since the new government has reaffirmed that diesel prices will not be rolled back.
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Indian Bank restructuring plan
Mumbai: Indian Bank, described in the Verma Committee report as a ‘weak bank’, will be restructured, a plan for which will be prepared by a committee headed by HDFC chairman Deepak Parekh. Other members of the panel are S D Kulkarni, former chief executive, Larsen & Toubro, Ram Gupta, former managing director, State Bank of Patiala, and Dileep Chokshi, senior partner with chartered accounting firm C C Chokshi.
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