Govt. Plans Programmes & Policies
Initiatives Taken to Improve Indian
Economy
Question :Capital Market Reforms
Answer:
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This year, Qualified Foreign Investors were permitted for the first time to
directly invest in Indian Mutual Funds and in Indian Equity Markets. Keeping in
view India’s huge investment requirement for infrastructure development, the
limit for FII investment in long-term corporate bonds issued by the companies in
the infrastructure sector was raised from US$ 5 Billion to US$ 25 Billion. A
number of liberalization initiatives in External Commercial Borrowings were
notified to supplement resources for investment.
