| Date: |
20-06-2011 |
| Subject: |
Govt May Allow Foreign Individuals To Invest $10 Billion in MFs |
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New Delhi: India is likely to allow foreign individuals to invest in mutual funds in the next two weeks but with a cumulative cap of $10 billion, an official said.
The detailed guidelines are being worked out jointly by the finance ministry, RBI and Sebi.
These will be notified by the capital market regulator, the Finance Ministry official said.
The move follows announcement in the last Budget by Finance Minister Pranab Mukherjee.
It was aimed at broad-basing the flow of foreign investment in the Indian stock market, so that dependence on FIIs' funds, considered as hot money, is reduced.
"This will increase corpus in MF holdings, which means MFs will purchase more equity and other schemes as a result of which it will help in fighting volatility, which takes place due to FII outflows," a Finance Ministry official told PTI.
Source : siliconindia.com
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