FIPB to consider HDFC Standard Life, Aviva Life, other nine FDI proposals next week

Inter-ministerial body FIPB will take up nine foreign investment proposals, including those of insurance companies HDFC Standard Life Insurance and Aviva Life Insurance Company, on December 29.

The meeting of the Foreign Investment Promotion Board (FIPB), to be chaired by Economic Affairs Secretary Shaktikanta Das, will also consider proposals of Tata Sikorsky Aerospace Ltd, Sharekhan Ltd, Quantum Simulators Pvt Ltd and SunE Solar BV.

Proposals of both HDFC Standard Life Insurance and Aviva Life Insurance Company were earlier deferred as more information was required, sources said.

British insurer Standard Life is seeking approval to increase its stake in HDFC Standard Life Insurance Company Ltd from existing 26% to 35% for a total consideration of about USD 264.45 million (Rs 1,750 crore).

Besides, another British player Aviva Plc is seeking clearance for raising its stake in the Indian venture.

As per the changed legislation, a foreign entity can increase its stake in private sector insurance companies to 49% from earlier ceiling of 26%.

To this effect, Insurance Laws (amendment) Bill was passed by Parliament in March with a caveat that control and ownership of the company should remain with Indian promoters.