Qualified FIs may see direct SE entry

Currently, only overseas high networth individuals (with minimum networth of $50 million), which are registered as sub-account of foreign institutional investors (FIIs), are allowed to participate in the stock market. “We are exploring the options to widen the class of investors in the Indian equity market by allowing QFIs,” he said.

The decision would help in projecting India as a global investment centre and attracting equity capital from abroad. The move is being considered at a time when the stock markets are volatile due to debt problems in several advanced economies and concerns on domestic fronts, like inflation and high rate of interest. Besides, there are concerns over flight of foreign capital in the recent times. FIIs have pulled out Rs 632 crore from Indian equities so far in 2011.

In order to promote portfolio investment route, the Centre, last month, allowed QualifiedForeign Investors — individual, group or association — to invest up to US$13 billion in equity and debt schemes of mutual funds in the infrastructure sector.

The decision has made it easier for overseas investors to participate in the infrastructure sector projects in India.

DH Newsletter Privacy Policy Get the top news in your inbox
Comments (+)