Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: empanelment :: ACCOUNTING STANDARDS :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: articles on VAT and GST in India :: TDS :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: due date for vat payment :: cpt :: VAT Audit
Finance BillBudget (Interim)Budget-2006
Finance Bills »
 The Companies (Removal Of Difficulties) Seventh Order - dated 4th Sept 2014 New
 Finance & Commerce Ministry to discuss draft BIPA model tomorrow
 Union Finance Minister Shri Arun Jaitley said that the revenue targets fixed for Direct Taxes for the current Financial Year 2014-15 would not only be achieved but would also be surpassed
 Finance ministry may pitch for higher tax exemption on health insurance
 Finance minister reviews annual performance of public sector banks and financial institutions for 2013-14; calls for tougher action against wilful defaulters; highest ever more than 10,000 new branches opened during 2013-14
 India Infrastructure Finance Company to raise Rs 7,000 crore through tax-free bonds
 Finance Ministry hopes RBI focusses on promoting growth in policy tomorrow
 Wary of chit fund scam, finance ministry to fast-track Prize Chit Banning Act amendments
 Finance Ministry appoints auditors without consulting RBI, step aimed at avoiding conflict of interest
 Parliament heads for gridlock as consent on financial reform bills unlikely
  NBA players take high-stakes fight to court

Insurance Laws Bill may be put on the fast track
May, 20th 2009

The Insurance Laws Amendment Bill is expected to be one of the first pieces of legislation to be taken up for discussion in Parliament when the Fifteenth Lok Sabha session is convened.

The Bill was placed in the Rajya Sabha last July. The Bill, that proposes amendments to the Insurance Act of 1938, General Insurance Business Nationalisation Act (GIBNA), Life Insurance Corporation and the Insurance Regulatory and Development Authority, was likely to be passed at the earliest.

The Bill provides for raising the foreign investment ceiling in the domestic insurance sector to 49 per cent from the current level of 26 per cent. But sources said the key elements of interest in the Bill were proposals that allowed for dilution of government holding in the public sector insurance companies on the lines of the public sector banks.

In some of the banks, the Government holding was already down to the threshold of 51 per cent. The Amendment Bill provides for inserting a new clause into the GIBNA, whereby public sector insurers would be allowed to raise capital directly from the financial markets, either by way of equity, subordinated bonds or through hybrid instruments.

The sources said that the Union Ministry of Finance was prepared for a possible divestment in one of the four non- life insurance companies, before the end of this calendar year itself. Valuations have already been submitted to the Government by the consultants, the sources added.

Solvency I regime

However, none of the PSU insurers was short of capital. PSU insurers for the last financial year are reported to have solvency ratios in excess of two times. This was against the 1.5 times prescribed by the insurance regulator. (Solvency margin is the excess of capital and value of assets over their respective liabilities.) This ratio was despite the current regime of valuing assets at book value.

The sources said that a migration to the Solvency I regime would result in marking the assets to the market. This shift, the sources said, would result in unlocking further capital for the PSU insurers. The four PSU insurers are currently capitalised at close to Rs 15,000 crore.

The key driver to accelerating the passage of the Bill was the mounting need to find new funding methods for resources for a fiscal stimulus package. The need arises from the slowdown in revenue receipts and mounting borrowings. Consequently, the sources said, the need was to find resources that were likely to cause the least damage to the fiscal deficit, estimated for the current fiscal in the Interim Budget at 6.6 per cent.

The sources said that the dilution of stake either through the IPO route or in favour of the public sector banks cross-holding mechanism was one route for raising resources.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions