49% FDI has been sanctioned by the Cabinet in the insurance sector.
The gains has also been registered by Union, IDBI, Andhra Bajaj Finance,
In some cases the pricing formula for selling the stake has also been biased while in some companies the agreement is for transfer of stake at market value.
The 49% stake would be granted under the Foreign Investment Promotion Board (FIPB) route as against the current automatic approval process.
FIPB approval need could entail that the authorizations could be on a case by case basis.
The FIPB requirement has enhanced concerns in respect of companies where the foreign partner has willy-nilly management control via the right to hire a CEO.
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