Ajay Tyagi, the chairman of the Securities and Exchange Board of India (SEBI), led a team to the United States of America in a bid to attract investors. The SEBI delegation met market participants at New York, Boston, and Washington DC. The SEBI Chief briefed the market participants about key trends in the Indian economy and markets.
The US is the top destination from where the foreign portfolio investors (FPIs) are coming to the Indian markets. The FPIs from the US have invested nearly USD 450 million in the Indian markets. Therefore, Ajay Tyagi described the recent developments in India in an attempt to attract investors.
SEBI, in a press release, said that the market participants are interested in the emerging areas such as alternative investment funds (AIFs) and real estate investment trusts (REITs). Also, SEBI briefed on the investment opportunities in infrastructure projects, government’s disinvestment programme, GIFT City, and stressed assets.
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The market watchdog said that it had detailed discussions while it proposed the regulatory framework for issuing the receipts of the depository and listing Indian equities on the foreign equity markets. The SEBI highlighted a major achievement of the Indian market being ranked in the top 10 global markets in terms of the market value.
The Indian domestic market is ranked in the top 10 for the number of equity-linked derivatives contracts traded. The meeting has come at a time when the FPIs have extended their selling trend. The FPIs have recorded a sharp selling activity between 2019’s July and August. The FPIs withdrew Rs 20,000 crore in the said duration.
Concerned by the most significant quarterly outflow in over three years, the SEBI decided to have meetings with the market participants in the United States. A major cause for the FPIs pulling out is possibly the increase in the surcharge on FPIs registered as trusts and associations and the super-rich.
The global factors such as the Sino-American trade war, global economic slowdown, tensions in Hong Kong and Argentina, and a slump in the Chinese yuan have only added to the woes of investors. The Indian markets are down at a time when they are touted to perform better than ever before.
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Engineer by qualification, financial writer by choice. I am always open to learning new things.
