Insurance shares gain on hike in FDI limit to 74%; Bajaj Finserv surges 9%

The limit on FDI in Indian insurance companies will be lifted from 49 per cent to 74 per cent, a move aimed at attracting overseas players.

Shares of companies engaged in insurance business rallied by up to 9 per cent on the BSE on Monday after the government proposed to increase foreign direct investment in the sector to 74 per cent, a move aimed at attracting overseas players.

The limit on FDI in Indian insurance companies will be lifted from 49 per cent to 74 per cent, said Finance Minister Nirmala Sitharaman on Monday in her Budget speech for 2021-22, accepting a demand the industry had proposed for long.

The law presently says an Indian insurance company has to be "Indian-owned and controlled". This