Mumbai: Shares of companies in insurance sector gained as much as 4 percent Wednesday after the government approved the Ordinance route to implement insurance reforms.
Reliance Capital gained 3.72 percent, while Max India rose by 1.99 percent and Aditya Birla Nuvo by 1.03 percent on the BSE.
Moving at rapid pace, the Cabinet today 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 percent 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 percent, which has been pending since 2008, will result in capital inflow of USD 6-8 billion.
