Domain-B: The government has decided to allow foreign individuals to invest directly in the stock markets, as it seeks to garner foreign funds and shore up current account deficit. This shift in policy, the government thinks, will help attract more foreign funds, deepen the Indian capital market and reduce market volatility. So far only institutional investors and non-resident Indians
could invest directly in stocks. Foreign nationals were allowed to invest in India's equity market through indirect routes such as mutual funds or through institutional vehicles. ''The central government has decided to allow qualified foreign investors (QFIs) to directly invest in Indian equity market in order to widen the class of investors, attract more foreign funds, and reduce market volatility,'' the finance ministry said in a statement on Sunday.Read Full: domain-b.com : Foreigners allowed to invest directly in Indian stocks
