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With reference to the Insurance sector, consider the following statements:
1. Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act.
2. The insurance Act has been amended recently to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
With reference to the Insurance sector, consider the following stateme...
Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act.
- This follows the recent amendments to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.
- However, a majority of board members, key management persons (KMP) need to be resident Indian citizens, as should at least one of the three top positions — the chairperson of the board, the MD and CEO.
- This new norm will apply to all insurers, irrespective of the stake held by the foreign partner.
- The Finance Ministry has also specified further conditions on the composition of the board for firms where foreign investors’ stake exceeds 49%.
- Hence both statements are correct.
Most Upvoted Answer
With reference to the Insurance sector, consider the following stateme...
Statement 1: Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act.
Statement 2: The Insurance Act has been amended recently to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.
Explanation:
To analyze the given statements, let's look at each one individually:
Statement 1: Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act.
This statement is correct. The Insurance Act has been amended to restrict the nomination of a majority of the board members by Indian promoters in insurance joint ventures with foreign partners. Previously, Indian promoters were allowed to nominate a majority of the board members, which gave them significant control over the operations and decision-making of the joint ventures. However, under the new rules, the nomination will be more balanced, allowing for increased participation and decision-making power of foreign partners.
Statement 2: The Insurance Act has been amended recently to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.
This statement is also correct. The Insurance Act has indeed been amended to enhance the FDI limit in the insurance sector. Previously, the FDI limit in the sector was capped at 49%, but it has now been increased to 74%. This increase in the FDI limit is aimed at attracting more foreign investment and promoting growth in the insurance sector.
Conclusion:
Both statements are correct. The first statement highlights the change in the nomination of board members by Indian promoters in insurance joint ventures with foreign partners, while the second statement focuses on the increase in the FDI limit in the insurance sector. These changes aim to promote a more balanced and competitive environment in the insurance sector, allowing for increased participation and investment from foreign partners.
Statement 2: The Insurance Act has been amended recently to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.
Explanation:
To analyze the given statements, let's look at each one individually:
Statement 1: Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act.
This statement is correct. The Insurance Act has been amended to restrict the nomination of a majority of the board members by Indian promoters in insurance joint ventures with foreign partners. Previously, Indian promoters were allowed to nominate a majority of the board members, which gave them significant control over the operations and decision-making of the joint ventures. However, under the new rules, the nomination will be more balanced, allowing for increased participation and decision-making power of foreign partners.
Statement 2: The Insurance Act has been amended recently to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.
This statement is also correct. The Insurance Act has indeed been amended to enhance the FDI limit in the insurance sector. Previously, the FDI limit in the sector was capped at 49%, but it has now been increased to 74%. This increase in the FDI limit is aimed at attracting more foreign investment and promoting growth in the insurance sector.
Conclusion:
Both statements are correct. The first statement highlights the change in the nomination of board members by Indian promoters in insurance joint ventures with foreign partners, while the second statement focuses on the increase in the FDI limit in the insurance sector. These changes aim to promote a more balanced and competitive environment in the insurance sector, allowing for increased participation and investment from foreign partners.
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With reference to the Insurance sector, consider the following statements:1. Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act.2. The insurance Act has been amended recently to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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With reference to the Insurance sector, consider the following statements:1. Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act.2. The insurance Act has been amended recently to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about With reference to the Insurance sector, consider the following statements:1. Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act.2. The insurance Act has been amended recently to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Insurance sector, consider the following statements:1. Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act.2. The insurance Act has been amended recently to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
With reference to the Insurance sector, consider the following statements:1. Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act.2. The insurance Act has been amended recently to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about With reference to the Insurance sector, consider the following statements:1. Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act.2. The insurance Act has been amended recently to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Insurance sector, consider the following statements:1. Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members, as per the new rules notified under the Insurance Act.2. The insurance Act has been amended recently to enhance the foreign direct investment (FDI) limit in the sector to 74% from 49%.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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