Budget News: Here are all market-related annoucements
Finance Minister P Chidambaram today said the country will now adopt international practices to differentiate between foreign institutional investors and foreign direct investment into the capital market.
February 28, 2013 / 15:56 IST
Moneycontrol Bureau
Finance Minister P Chidambaram today said the country will now adopt international practices to differentiate between foreign institutional investors and foreign direct investment into the capital market.In his Budget speech, Chidambaram said that foreign investors with less than 10% stake in a particular stock will be considered as FII, and more than 10% stake as FDI.He also moved to allow FIIs to participate in the currency derivative segment, but subject to foreign exchange exposure.The FM has also proposed to allow stock exchanges to have a dedicated debt segment, where pension companies and insurance companies can trade, and has allowed mutual funds to become members of stock exchanges.He further said that the proposal to amend the Securities Exchange Board of India Act is under consideration.Chidambaram has also proposed several other measures to boost the capital market, such as slashing the securities transaction tax to 0.1% from 0.17%. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
