Foreign direct investment (FDI) proposals made by 15 companies including Tata AIA, Aviva Life, Nippon Life Insurance and Birla Sun Life Insurance worth ₹7,261 crore were approved by the Foreign Investment Promotion Board (FIPB) in its meeting on Monday.
YES Bank’s proposal to hike foreign investment limit to 74 per cent from existing 41.87 per cent without any sub-limits, was referred by the FIPB to the Cabinet Committee on Economic Affairs as all FDI proposals over ₹5,000 crore require its nod. The proposal is worth ₹6,885 crore.
Tata AIA Life Insurance Company’s proposal to increase AIA International's stake from 26 per cent to 49 per cent involving foreign investment of ₹2,055 crore was cleared by the board, according to an official release.
The FIPB also gave a green signal to Sun Life Financial (India) Insurance Investments’ proposal worth ₹1,664 crore for the acquisition of 23 per cent in Birla Sun Life Insurance Company Ltd, which is currently held by Aditya Birla Nuvo Ltd, thereby, increasing the foreign equity in the company from to 49 per cent from 26 per cent.
Japan’s Nippon Life Insurance Company received a go-ahead for its proposal to bring in FDI worth ₹2,265.5 crore by acquiring a 23 per cent additional stake in Reliance Life Insurance Company Limited, an Indian company, increasing its aggregate shareholding to 49 per cent from 26 per cent.
Aviva Life Insurance’s ₹940 crore proposal to hike Aviva International's stake to 49 per cent transferring 23 per cent shareholding currently held by Dabur Investment Corp was also cleared.
The FIPB deferred eight proposals including ones by Bupa Singapore Holdings, HSBC Securities and Capital Markets and ICICI Lombard General Insurance Company.
It also rejected 10 proposals including ones from Apollo Hospitals, Lupin, Hive Technologies and Barefoot resorts.