Mumbai: Shares of companies related to insurance business surged up to 10.5 percent Monday following reports that the Finance Ministry is contemplating raising FDI cap in the sector from 26 percent to 49 percent with some riders.
Reliance Capital shares rallied 10.41 percent, while Max India rose by 10.05 percent on the BSE.
Shares of Bajaj Finserv gained 3.15 percent, while Religare Enterprises was up 1.97 percent.
Finance Ministry is contemplating raising FDI cap in insurance sector from 26 percent to 49 percent with some riders like restriction on voting right.
"We might increase FDI cap in insurance without commensurate increase in voting rights. We talked with stakeholders and also held high level meeting in ministry," a senior ministry official said.
The official further said that the government may raise the FDI cap in the sector gradually beginning with non-life and health followed by life insurance segment.
