FII Investments to India- Indian Demand Story!

With an ever increasing demand for Indian securities, investments through FII’s and sub brokers in Indian equity markets have led to the demand story for investments. India offers better returns than other emerging markets, the Sensex performing well even in the light of high volatility, climbing 57% in 2007. Due to sustained liberalization on the domestic frontier, foreign investors have found Indian markets as favorable choice of their investment destinations, besides China. The number of registered FII’s in India amount to 1,168 and their registered sub accounts around 3,500. Non-debt creating investments have increased which now constitute most of the private capital and FII investments in India, in contrast to debt creating investments in the early 90’s. FII’s have been investing through various overseas derivatives instruments and one such option has been Participatory Notes (PN), which have been under much review by market regulator Sebi. 2008 might see more liberalization of the capital account as an FII policy since more investors have turned to India for better performances, stability and a more mature capital market to invest.

Right Horizons' Desk
Source-Nj Funds