Mumbai: Shares of companies in insurance sector gained as much as 4 per cent on December 24 after the government approved the Ordinance route to implement insurance reforms. Reliance Capital gained 3.72 per cent, while Max India rose by 1.99 per cent and Aditya Birla Nuvo by 1.03 per cent on the BSE.
Moving at rapid pace, the Cabinet on December 24 approved key insurance and coal sector reforms which were stuck in Parliament logjam and also liberalised foreign investment policy in the medical devices sector.
A day after the conclusion of the Winter session of Parliament, the Cabinet approved promulgation of the Ordinance on Insurance Bill, re-promulgation of the Coal Ordinance and allowing up to 100 per cent FDI in medical devices in the pharmaceutical sector under the automatic route.
Briefing reporters, Finance Minister Arun Jaitley expressed the hope that hiking of the foreign investment cap in the insurance sector to 49 per cent, which has been pending since 2008, will result in capital inflow of USD 6-8 billion.
