Competition Commission has approved UK insurer Aviva's proposal to acquire additional 23 per cent stake in its Indian insurance joint venture, said the media report.

Aviva Life Insurance Company India Ltd is a joint venture between Aviva and Dabur Invest Corp (DIC). The British insurer already has 26 per cent stake in the entity.

Once complete, Aviva's stake in the venture would increase to 49 per cent, the maximum permissible limit allowed for an overseas player to hold in an Indian insurance firm.

In a tweet today, Competition Commission of India (CCI) said it has approved the acquisition of additional 23 per cent equity of Aviva Life Insurance Company India by Aviva International Holdings Ltd.

Aviva International Holdings has majority of non-UK operations of the Aviva Group in various countries including India, Ireland, Indonesia, Taiwan and Vietnam, said the PTI report.

As per the summary of the proposal before the CCI - which keeps a tab on unfair business practices across sectors - Aviva is a holding company while DIC is a special purpose vehicle that does not have any other life insurance business operations in India.

"The increase of Foreign Direct Investment limits in India from 26 per cent to 49 per cent has made the Indian insurance market much more attractive. We intend to increase our stake in the Aviva India joint venture business", Aviva Europe and India CEO David McMillan had said in August this year.