FIPB Likely To Consider ICICI Fin Foreign Stake This Week

The appeal of ICICI Bank for permission to sell equity in ICICI Financial Services to foreign investors is expected to be considered by the Foreign Investment Promotion Board (FIPB) on July 13. The board will examine a letter submitted by ICICI explaining its case for clearing the proposal. The bank has already highlighted its arguments to representatives of the FIPB and the finance ministry since clearance for the proposal was not accorded. The Department of Industrial Policy & Promotion (DIPP) has already indicated that it has no objection to the proposal. The insurance division in the finance ministry and the Insurance Regulatory and Development Authority (Irda) have also said the proposal does not violate foreign direct investment (FDI) guidelines for the insurance sector. Apart from submitting representations and meeting government officials to explain its case, the bank has also submitted legal opinion supporting FDI in ICICI Financial Services. Finance minister P Chidambaram, it is understood, is also in favour of FIPB looking at the ICICI Bank''s application afresh in the light of views expressed by DIPP and the insurance division of the finance ministry