New Delhi: Finance Minister Yashwant Sinha on March 9 said there was no proposal to allow foreign portfolio investment by Foreign Institutional Investors (FIIs) beyond the sectoral cap of 26 per cent in the insurance sector.

"There is no question of the cap being raised in insurance. It is bound by the Law passed in the Parliament," Sinha told reporters on the sidelines of seminar on globalisation in New Delhi.

Currently, foreign players including FIIs are allowed a maximum 26 per cent stake in an insurance company as per the Insurance Regulatory and Development Act.

Asked about a possible hike in the FII limit on telecom, Sinha said, "Other things are under discussion. These announcements would be made at an appropriate time."

The FII sectoral cap on telecom services is currently at 49 per cent.

In his Budget, Sinha has proposed that FII portfolio investment will not be subject to the sectoral limits for Foreign Direct Investment (FDI) except in specified sectors.

PTI