Stock Markets to Foreign individuals

Indian Markets accessible to foreign individuals.

Foreign individuals had access to investing in India through Mutual funds in equity market. The government of India has decided to allow qualified foreign investors to directly invest in Indian equity market to attract more foreign funds and reduce market volatility.

The foreign individuals will be able to access the Indian stock market from January 15^th 2012. Experts say that the decision to allow foreign nationals to invest in Indian market was positive move and the flow of funds will increase in the near term.

Following the rule change, foreign investors will be able to directly buy and sell shares in the market.

There will, however, be some restrictions:

An individual and aggregate investment limit of 5% and 10% respectively of the paid up capital of an Indian company

They will have to trade via one account held at a "registered qualified depositary participant"

With double digit inflation, High interest rates and slowing growth, economists predict the growth below 7 percent this fiscal year. With this move by the government in the current situation will this help our current weak market condition? Will the Rupee value against Dollar increase?