Mumbai, Feb 11 (IANS): Reliance Capital has secured the nod from Competition Commission of India for its Japanese partner to hike its stake in the life insurance arm to 49 percent with further investment of Rs.2,265 crore ($350 million), a company statement said on Thursday.

The tranaction with Nippon Life, is expected to peg the valuation of Reliance Life Insurance at around at Rs.10,000 crore (nearly $1.5 billion). In line with the shareholding structure, the name of the company is also being changed to Reliance Nippon Life Insurance Company.

Once this transaction concludes, the Japanese insurer would have invested Rs.8,630 crore ($1.3 billion) for a 49-percent stake each in Reliance Capital's life insurance and asset management companies -- among the largest foreign investments in India's financial services sector.

Laast month, Reliance Life Insurance had announced a market share of 4 percent in the private sector in terms of new business premium. This segment was worth Rs.285 crore for the quarter ended December 31, while renewal premium was of the order of Rs.706 crore.