(Online Course) Contemporary Issues for IAS Mains 2012: Govt. Plans Programmes & Policies - Capital Market Reforms
Govt. Plans Programmes & Policies
Initiatives Taken to Improve Indian Economy
Question :Capital Market Reforms
Answer:
This year, Qualified Foreign Investors were permitted for the first time to directly invest in Indian Mutual Funds and in Indian Equity Markets. Keeping in view India’s huge investment requirement for infrastructure development, the limit for FII investment in long-term corporate bonds issued by the companies in the infrastructure sector was raised from US$ 5 Billion to US$ 25 Billion. A number of liberalization initiatives in External Commercial Borrowings were notified to supplement resources for investment.