In the business sector, a JV between New York Life and Max India has exited in form of selling its 26 % shares by New York Life to Mitsui Shumitomo, non-life Insurance Corporation.
Max New York Life is an Insurance Company whose partner New York Life is a foreign shareholder that led to having 26% share of partnership.
Foreign shareholder has directly sold its shares to Japanese Company and now makes Max India, the owner of a large amount of 74% stake in the JV.
The decision took by Shareholder has been accepted by Board of Insurance Corp. on Thursday.
All the top profile board members have given their approval over this complex transaction that will make Mitsui Sumitomo Insurance Co as a representative of Max India.
Lat month, govt. has restricted FDI in India through foreign investors up to limit of 26 percent in insurance sectors. Recent step will be good for Japanese partner that will continue its functioning with Max India and expand its sharing the sales network in India’s life insurance market.
However still, approval of Indian law authorities has been needed to follow this transaction. After that the Max Life Insurance Corporation will have revealed its balance sheet as a detail of financial positioning.