The government cleared Fairfax Financial Holding's proposal to acquire an additional 9 percent stake in ICICI Lombard General Insurance company for an estimated sum of Rs 1550 crore.
ICICI Bank's holdings now stand at 64 percent in its general insurance arm while Fairfax now hold 35 percent stake after the transaction.
Fairfax had announced its intention to acquire the additional stake in October, which is now moving towards fruition.
The competition commission of India (CCI) - the governing anti-monopoly body- announced that it approved Fairax's proposed acquisition of an additional stake in the domestic insurer, via social media on December 29.
Indian insurance companies witnessed a spate of stake sale deals to foreign insurers after parliament eased norms by passing the insurance amendment bill in March.
The government passed the Insurance Laws (Amendment) Bill in March, 2015, lifting the limit of foreign ownership in domestic insurance companies to 49 percent from 26 percent