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Foreign Investors will boost Indian Economy
The Govt of India on the New Year's Eve has declared a good notification to allow the foreigners and others to invest in the Indian Stock Markets directly now. Indeed it's an excellent move.

THE INFLOW of the Foreign Currency in the country will increase tremendously and our foreign debts amounting to billion crores will also be reduced accordingly. Now our Finance Ministry will allow  qualified foreign individuals to invest directly in Indian Equity Market. The process of investment will be made easier by removing the tedious paper work. At present India only allows any wealthy individual of high net worth, with a minimum net worth of $ 50 Million dollars, who is registered as a sub account of a Foreign Institutional Investor to invest.


SEBI and RBI will issue the appropriate circulars in this regard by 15th January, 2012 implementing the changes. The individual and aggregate investment limit for them will be 5 percent to 10 percent of the total Capital of an Indian company. Our economy will indeed flourish now and the country will be able to attain a growth rate of 9 percent with the foreign investments and the Stock market will also be more stable and profitable. The net value of the share of a company will also have a good jump once the scheme starts.

Our Indian Sensex, which was down by over 20 percent in the year 2011 will also rise considerably. The Indian companies will now have additional capital for their operating funds as capital and the foreign borrowing will be considerably reduced to a great extent. The Oil Producing Countries such as Saudi Arabia, Kuwait and Qatar will soon start pumping their funds in the Indian Markets. Certainly with the introduction of the new scheme and resolution India will very shortly compete with other developing countries.
 


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