The government’s new listing norms could have an unexpected fallout for the insurance industry. Regulator IRDA says it won’t tell insurers to increase their publicly held stakes to the new minimum of twenty five percent unless the government fulfills a condition of its own. IRDA is demanding the foreign direct investment or FDI limit be increased to 49% from the current 26%.
Back in 2008, the government approved a bill to do just that and tabled it in Parliament. But it’s run into opposition and hasn’t passed yet.
On Thursday the government approved an increase in the support prices for paddy and pulses that are going to be harvested in October. On average, the support price has gone up 5.2% for paddy and 21.4% for pulses. The decision to increase the prices was made by the cabinet committee on economic affairs. Paddy is the most important of India’s Kharif crops, but pulses are a major source of protein. Experts have told Mint the new support prices are unlikely to have an impact on food inflation.