| Date: |
25-02-2012 |
| Subject: |
Budget Expectations: What NRIs expect from FM in Budget 2012 |
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I understand that the choices before Finance Minister Pranab Mukherjee are so limited that if he tries to offer immediate gratification to investors by announcing deep and bold tax cuts, he might end up putting India's longer-term prospects at risk.
NRI expectations
The finance ministry is considering allowing individual foreign investors to directly buy corporate bonds issued by Indian companies. As an NRI, I would like the finance minister to extending this regime to debt which will complete the reforms agenda for overseas investors.
Foreign investor expectations
Currently, foreign individuals are allowed to invest in Indian corporate bonds only as a sub-account of a foreign institutional investor (FII). The FIIs, in turn, needs to go to Sebi and apply on their behalf. Direct investment will not only make the process simpler, but also less expensive.
Source : moneycontrol.com
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