The Associated Chambers of Commerce and Industry of India (Assocham)
has recommended that the Reserve Bank of India (RBI) should allow non-resident
Indians (NRIs) to hedge their currency risk in Indian currency and provide
regulatory approvals, enabling retail investments in Indian stock markets
from NRIs and foreigners.
Regulations relating to NRI investment in Indian stock market are complex,
cumbersome and archaic and these need to be simplified, said Sajjan
Jindal, president of Asocham in a presentation to RBI. According to
Jindal, investments by NRI's are clubbed with those by FIIs for determining
the total FII investment limit in any company, as a result of which
NRIs are deprived of an opportunity to invest in many companies even
when the market is down, he added.
