Fii Nomes in India and Impact on Stoc Market

www.nseindia.com 177 orthogonal Investments in India ISMR 7. Foreign Investments in India Introduction Foreign targetments in the country can take the form of investments in listed companies (i.e., FII investments), investments in listed/unlisted companies other than through stock exchanges (i.e., through the extraneous direct investment or private equity/ strange venture capital investment route), investments through American bank deposit Receipts/Global Depository Receipts (ADR/GDR), or investments by non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) in various forms (Chart 7-1). Chart 7-1: Foreign Investments in India Evolution of policy framework1 Until the 1980s, Indias development outline was focused on self-reliance and import-substitution. Current account deficits were financed commandly through debt flows and official development assistance. There was a general disinclination towards foreign investment or private mercantileized flows. Since the initiation of the reform process in the early 1990s, however, Indias policy stance has changed substantially, with a focus on harnessing the ontogeny global foreign direct investment (FDI) and portfolio flows.

The broad glide slope to reforms in the external sector after the Gulf crisis was define in the Report of the High Level Committee on Balance of Payments (Chairman: C. Rangarajan). It recommended, inter alia, a compositional switch in capital flows away from debt to non-debt creating flows, the strict regulation of external commercial borrowings, especially short-term debt, the discouragement of volatile elements of flows from non-resident Indians (NRIs), the gradual relaxation of outflows, and the disintermediation of the government in the flow of external assistance. After the propel of the reforms in the early 1990s, there was a gradual shift towards capital account convertibility. From September 14, 1992, FIIs and overseas corporate bodies (OCBs) were permitted to invest in financial... If you want to get a full essay, cabaret it on our website: Orderessay

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