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: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: cpt :: empanelment :: VAT RATES :: Central Excise rule to resale the machines to a new company :: VAT Audit :: list of goods taxed at 4% :: form 3cd :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: ACCOUNTING STANDARD
« General »
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces
 CAG lens on entities avoiding tax with ‘farm income’ claim

June, 11th 2010

New rules that stipulate a minimum 25 percent public shareholding in listed firms cant be implemented by insurance companies unless the government allows an increase in overseas ownership limits, the industry regulator has said.

The government has been reluctant to push through its own proposal to raise the foreign direct investment (FDI) limit to 49 percent from 26 percent in insurance companies fearing a backlash from trade unions and political parties, who oppose the move.

The FDI limit in life insurance has to be raised first to go with the recent minimum public shareholding norms, Insurance Regulatory and Development Authority (Irda) chairman J. Hari Narayan said. We are examining the situation.

In most insurance joint ventures, the foreign companies hold the maximum 26 percent stake, with the remaining 74 percent being held by the domestic promoter. Under company law, a 26 percent stake gives an entity the power to block any special resolution and foreign insurers will lose board power if their stake goes below the current level.

With foreign partners unwilling to dilute their stakes below 26 percent, since most have entered the business in anticipation of the limit being bumped up, the local partner will be forced to reduce its stake to 49 percent to meet the new norms. That could create its own complications since under Indian company law, a 51 percent stake ensures ownership.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

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