Emerging markets witness $25 bn foreign capital flow
The Dollar Business Bureau In July so far, emerging markets has recorded a $25 billion inflow from foreign portfolio investors, with the funds are majorly driven by equity segment, a report said. The equity flows contributed a major part in the month of July, with expected inflows of $14.6 billion, whereas the debt flows were more modest at $10.2 billion, said a report by the Institute of International Finance (IIF). The emerging markets Asia and Latin America had dominated the inflows whereas emerging markets Europe, Africa and Middle East witnessed moderate outflows. “Region-wise, emerging market Asia recorded overall inflows of $19.1 billion. This was followed by emerging market Latin America with $8.7 billion of inflows, whereas there were moderate outflows from ...
Rexit Impact: foreign funds take out Rs. 2,837 crore
The Dollar Business Bureau In line with the industry’s earlier prediction following RBI Governor Raghuram Rajan’s surprise announcement of resignation bringing an end to his three-year term on September 4, foreign investors on Monday took out over Rs.3,700 crore from the Indian market, the highest single-day outflow so far during this financial year. On the first trading session on Monday, foreign portfolio investors (FPIs) remained the major net sellers as they sold to the tune of Rs 2,837 crore in Indian markets on Monday's trade. Life Insurance Corp. pumped in Rs.99 crore to buy shares of 6-7 bluechip firms. Its mutual funds also attracted heavy buyers with a net purchase of Rs. 459 crore worth-shares and debt securities worth Rs.1,215 crore during ...
RBI limits FDI to 49% in Equitas Holdings
The Dollar Business Bureau The Reserve Bank of India (RBI) on Wednesday notified that aggregate foreign investment limit in Chennai-based Equitas Holdings, which got an in-principle approval for small finance bank, should not exceed 49 percent. In September 2015, Equitas Holdings was among the 10 enterprises to have been granted in-principle approval from the central bank for setting up small finance banks. According to the RBI's notification, foreign investment in small finance banks would be in accordance with the FDI policy for private banks. A release by RBI stated that the overall investment limit in Equitas Holdings under the Portfolio Investment Scheme for foreign portfolio investors (FPIs)/foreign institutional investors (FIIs) shall remain at 24 percent and for non-resident Indians (NRI), the ceiling should be at 10 percent. “For total foreign ...
Talking to government to hike FPI cap in govt bonds: RBI Governor
Source: PTI Reserve Bank is in discussions with the Finance Ministry to raise the Foreign Portfolio Investment (FPI) cap in government bonds, Governor Raghuram Rajan said today. After discussions, RBI will formulate a framework to raise the investment limit for such investors in government debt securities, which will be pegged to the rupee against the current practice of linking it to the dollar, he said. "The overall goal of this medium-term framework will be to enlist FPIs in market development within prudential limits which we set even as they are attracted by the rates available in domestic bonds," Rajan told reporters at the customary post-policy press conference here today. The proposed framework, expected by next month, will include a target for what ...
