Right on the opening bell we have witnessed a 10% lower circuit on NIFTY/Sensex. This has happened for the third time in the history of the Indian stock markets when the markets hit the lower circuit and remain closed for specific duration during the trading hours. This was expected on the back of SEBI's proposed move on p-notes participations for FII's.
As per FM this step is one of the series of steps that has been taken to moderate the capital inflows into the India. If Investor thru participatory notes wishes to register as FII to invest in India they are welcome.
This raises a number of questions:
1.Is this a right channel to moderate capital inflows?
2.Is it really possible to moderate capital inflows into countries like India where the bulls are on your side?
3.What if tomorrow the face of the games is changed and the bulls are no longer here? In this case the country would be eager to get the capital inflows.
I think what we need at this time is a really healthy analysis of the current situation from SEBI,FM & RBI and long term plan to address the identified issues which will create a win win situation for everyone .
No comments:
Post a Comment