NRI Worldwide > NRInvest
Rules eased for NRI investments in Mutual Funds
Report dated 10/08/2011 @ 6:30 PM
Banks, market regulators and the government have decided to permit NRI investors to purchase, on repatriation basis, rupee denominated units of equity schemes of domestic Mutual Funds (MFs) subject to a ceiling of $13 billion.
The move comes in the wake of the global financial turmoil after the US sovereign rating downgrade, the Eurozone debt crisis and the volatility in domestic equity markets.
According to the RBI, NRI investors also known as 'Qualified Foreign Investors (QFIs) need to meet the 'Know Your Customer' requirements of SEBI in order to buy units of equity schemes of domestic MFs.
Other avenues of investment are in place that include Dividend payments on units held by QFIs, redemption proceeds of the units and repatriation procedures.
Time to send your dollars to India ?
Report dated 09/08/2011 @ 5:55 PM
The rupee tipped up to a high of 43.95 against the dollar for a while till the dollar bounced back, but economists are dubious about the dollar staying ahead.
Experts believe a number of factors tilt the scales in favour of a stronger rupee including the Reserve Bank's forex reserves, improvement in foreign direct investment and the persistent weakness in the US economy.
That said, an appreciating rupee is bad news for dollar repatriations, money sent to India by NRIs.
Some tips have been offered:
Regular repatriations are for family maintenance, followed by investment into multiple assets including real estate. Sustenance remittances have no connection with exchange rates, meaning there is little one can do if monthly remittances are necessary.
For Investment driven repatriations, despite the seesawing of currency, various long term assets as well as real estate still look attractive as do NRO deposits.
FCNR depost routes also look good as depositers can act when they see a favourable exchange rate such as any rate north of Rs.45.
Other scenarios such as currency futures and cost effective remittances bring with them the usual risks and only seasoned investors can afford these.
US debt lands India in $41 billion exposure
Report dated 08/08/2011 @ 5:54 PM
India's exposure to the US debt is estimated at $41 billion as the country is one of the 15 largest creditors to the USA.
The debt downgrade of the US by Standard and Poor's may also lead to action by the Reserve Bank of India, that allows holding of goverment debt securities of countries with a triple A rating. While the majority of the portfolio is owned by the RBI, some Indian banks may also have some exposure.
The RBI holds US treasury securities as part of its foreign exchange reserves and the dollar holdings account for some 10 percent of its total portfolio.
India is fourteenth on the list of countries who are US foreign creditors. Leading the list is China.
India's forex reserves hit new high of $319 billion
Report dated 07/08/2011 @ 6:43 PM
Reserve Bank of India data confirmed that on July 29 India's foreign exchange reserves posted a new high of $319 billion.
Foreign currency assets have grown in tandem and appreciation in gold reserves also contributed.
USA loses 'AAA' rating. India calls it a 'grave situation'
Report dated 07/08/2011 @ 6:42 PM
Finance minister Pranab Mukherjee described Standard & Poor's (S&P) downgrade of the US government as a "grave situation".
Mukherjee said the issue will have to be analysed before remarks can be made.
The global markets including in Asia plummetted and in India's case the BSC Sensex plunged more than 700 points before recovering sightly with investors selling across the board.
Mukherjee reassured domestic fears saying the market drop was due to external factors, not domestic ones, and that the current volatility is temporary.
S&P stated that the US downgrade reflects its opinion that the fiscal consolidation plan which Congress and the administration recently agreed to, falls short of what in their view would be necessary to stabilise the government's medium-term debt dynamics.
Rating agencies - Moody's and Fitch affirmed their AAA credit rating but said downgrades are possible if lawmakers fail to enact debt reduction measures