New Delhi: The CPI(M) on Friday said government's move to raise the FDI cap in insurance sector and allowing foreign investment in pension funds would make India's finance sector vulnerable to speculation and asked political parties to defeat these measures in Parliament.

"These measures announced by the Union Cabinet will make India's finance sector more vulnerable to speculative finance capital," the party Politburo said in a statement.

It said the decision to allow Foreign Direct Investment in pension funds would "jeopardise the savings of millions of employees in the country".

Asking the people to oppose these 'anti-people' measures, the CPI(M) appealed to political parties to defeat these measures when they are brought before Parliament.

The Cabinet yesterday decided to raise the FDI cap in the insurance sector from the current 26 percent to 49 percent. It also decided to allow 49 percent FDI in pension funds.

(Agencies)

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