In what could be a big boost to the government’s disinvestment agenda, insurance companies may be allowed to invest up to 20 percent in the market as the investment cap on insurance companies may be hiked, reports CNBC-TV18′s Aakansha Sethi.
Reuters
The current cap for insurance companies is only 10%.
The government is also considering a higher cap for Life Insurance Corporation to invest in stock markets and Insurance Regulatory and Development Authority (IRDA) is likely to issue a notification shortly.
IRDA chief has also said earlier that LIC needs more than 10% exposure in companies.
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