Ease of entry & exit for foreign investors vital: StanChart

V Shankar, Group ED & CEO (EMEAA) Standard Chartered is of the belief that for any country, be it India or otherwise - to attract foreign investments - creating the right environment in terms of protection, in terms of rights, in terms of returns, in terms of overall attractiveness and ease of entry-exit imperative.

Investor sentiment for India is yet to recover. The emerging market currencies, including the rupee are under pressure on expectations of an eventual withdrawal of quantitative easing (QE) by the US Fed. Excerpts of his interview on CNBC-TV18 Q: How soon do you think we will see QE? A: When the quantitative easing (QE) started all the emerging markets were complaining about that. They were complaining about creation of an asset bubble which was true. Now that the QE is being rolled back there is complaint about withdrawal of money. However, QE withdrawal is a given. With America recovering, interest rates will go up and dollar may strengthen and money will return home in chase of higher yields and better performance. Q: How would you position foreign institutional investors (FII) sentiment going forward? A: I think your approach to attracting foreign investment is exactly the same thing. One is to get concerned about the short term volatilities which are a given today and they will continue to be so. You need to position yourself as an attractive investment destination for the future, on a long-term through the cycle basis. So, it is about creating the right environment for foreign investors in terms of protection, in terms of rights, in terms of returns, in terms of overall attractiveness - your ability to come in and your ability to exit. That’s what will drive in the long run foreign investment into any country.