India’s bankers’ counsel have
welcomed the decision to allow foreign nationals to invest
directly in India ListCos. But market participants expect
limited take-up from overseas investors while regional
economies remain volatile.
The move, announced by the Indian
finance ministry last week, aims to restore confidence in the
country’s economic transformation following a year
in which a weakening rupee and growing bearishness saw foreign
institutional investors pull $357 million out of India in 2011
after investing $29 billion in 2010.
It is hoped that widening the investor base, and thereby