Foreign retail investors may get to buy Indian shares

The finance ministry is considering a proposal to relax foreign individuals to directly buy shares of Indian companies. Current guidelines permit only foreign mutual funds to directly invest in the domestic bourses.

“There is a view that the government should not distinguish between India focused mutual funds and foreign retail investors,” a finance ministry official said, adding that a final decision is yet to be taken. However, if the move goes through, the government would set a ceiling on investments by foreign individuals.

This was also one of the key recommendations of the committee chaired by UTI AMC chairman U K Sinha on foreign investment, which recently submitted its report to the finance ministry. As part of its recommendations on a single window for portfolio investments, the committee has laid out a system where a foreign individual can trade in the Indian securities market “without ever setting foot in India”.

Courtesy : Indianexpress
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