A newly energised Government is set to push the reform agenda further, by taking four key pending legislations to their logical end.
The Cabinet may shortly take up for consideration official amendments to the Insurance Bill, Pension Bill, the Companies Bill, and the FCRA Bill.
Highly placed sources told
The winter session is likely to begin next month. The department-related standing committees of Parliament have already given their suggestions and accordingly official amendments are proposed.
Insurance Bill
Among the four bills, the Insurance Bill is most talked about. This Bill, among other provisions, proposes increasing foreign direct investment (FDI) in insurance companies to 49 from 26 per cent. Although the Standing Committee on Finance suggested not increasing the limit, the Government has not accepted this.
A source claimed that the Government’s disagreement has been mentioned in the note and it has been said that the foreign equity limit can not be capped at 26 per cent.
However, according to the source, nowhere in the Cabinet note has any alternative limit been mentioned. It is believed that the Cabinet is to take a call on the limit.
Only last week, a Finance Ministry official said that the Finance Minister was keen on getting Cabinet approval on raising the FDI cap in insurance sector.
This Bill was tabled in the in Rajya Sabha in 2008.
There is also a suggestion that rather than an FDI limit of 49 per cent, there should be a composite limit of 49 per cent. This implies the current 26 per cent FDI limit and a further 23 per cent limit on FII investments in the sector.
Pension Bill
The Pension Bill proposes providing statutory status to the interim pensions regulator PFRDA, as also allowing FDI for companies managing pension funds.
It is believed that whatever limit is decided for the insurance sector will be kept for the pension sector.
Interestingly, the Government has not prescribed any FDI limit in the Bill.
It plans to do it by rules while the Standing Committee suggests otherwise.
Now the Cabinet has to take a call on these suggestions, the source said.
The Cabinet is also likely to discuss amendments to the Competition Act. These amendments are related with norms for merger and acquisitions.