Anil Ambani Group financial services firm Reliance Capital has received in-principle approval from the Insurance Regulatory Development Authority of India (IRDA) for the sale of a 26-per cent stake in Reliance Life Insurance to Japan's Nippon Life.
Nippon Life is investing Rs3,062 crore ($680 million) in Reliance Capital, the largest FDI in the financial sector in India.
The transaction pegs Reliance Life Insurance valuation at Rs11,500 crore ($2.6 billion).
Nippon Life Insurance, a 122-year-old insurer and a Fortune 500 company, is the seventh largest insurance company in the world and the No 1 private life insurer in Asia and Japan.
Final approval for the proposed sale would be granted upon receipt of RBI consent, Reliance Capital said in a statement.
"We are delighted to receive the IRDA approval and expect to conclude this transaction within the next few weeks," Reliance Capital CEO Sam Ghosh said.