The Insurance Laws (Amendment) Ordinance, 2014, was promulgated enhancing the foreign equity cap
from 26 percent to 49 percent while safeguarding Indian ownership and control.
Higher foreign equity cap
will help insurance companies get more capital, say experts.
The Union Cabinet has given approval to the relevant ordinances for holding auctions for coal blocks and to hike the foreign equity cap
in the insurance sector to 49 per cent from the present 26 per cent.
The Japanese giant is also said to be keen to hike its stake in Reliance Life Insurance venture to 49 percent from 26 percent, as and when India notifies the decision of higher foreign equity cap
in the sector and comes up with the norms.
According to the Company, investor demand exceeded the offering amount and fundraising closed ahead of its mandated period, and in September 2013, PEPF II accepted final capital commitments to reach the[euro]450 million ($610 million) equity cap
for the offering.
INSURANCE LAWS ( AMENDMENT) BILL: It seeks to raise the foreign equity cap
in insurance companies from 26% to 49%
Such a comparison is incorrect and would be equivalent to comparing an equity cap
rate to an overall cap rate.
Free and Clear Equity Cap
Rate in the Korpacz Survey.
57 per cent, still below the new equity cap
of 45 per cent approved by the government recently.
For example, using the single-period capitalization calculation and the 20% equity cap
rate in exhibit 2, $10,000,000/20% yields a $50,000,000 equity value, while $12,000,000/20% yields a $60,000,000 equity value, and $20,000,000/20% yields a $100,000,000 equity value.
Raising the equity cap
presents an opportunity for U.
Interims: Clinigen Gp, Hays, Northamber, Strategic Equity Cap