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28Th July 2016
The Union Cabinet on Wednesday approved a proposal to raise foreign
shareholding limit in Indian stock exchanges from 5 to 15 per cent, an official
statement said. The Total Investment &
Insurance Solutions
The decision, taken at a meeting of the
cabinet, chaired by Prime Minister Narendra Modi, will increase shareholding
limits for foreign stock exchanges, depositories, banks, insurance companies
and commodity derivative exchanges.
"The cabinet has also approved the
proposal to allow foreign portfolio investors to acquire shares through initial
allotment, besides secondary market, in the stock exchanges," the
statement said.
"The move will help in enhancing global
competitiveness of Indian stock exchanges by accelerating, facilitating the
adoption of latest technology and global best practices which will lead to
overall growth and development of the Indian capital market," it said,
adding that the approval was in pursuance of implementation of the union budget
2016-17 announcement made by Finance Minister Arun Jaitley regarding reforms in
FDI (Foreign Direct Investment) policy in Indian stock exchanges. The Total Investment & Insurance Solutions
The National Stock Exchange (NSE) welcomed
the Union Cabinet's decision.
"NSE has always aligned itself with
global best practices. Exchange believes that government's decision is in sync
with the spirit of globalisation," said its Managing Director and Chief
Executive Chitra Ramkrishna. The
Total Investment & Insurance Solutions
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