NRI Real Estate and Property Investment in India
 |  WWW.NRIREALTYNEWS.COM
 
RBI Steps In to Check Rupee
Thursday, September 27, 2007

In a measure taken to check the rupeeís rise, the Reserve Bank of India has liberalized norms for Indian companies, mutual funds and individuals to invest abroad. Indian mutual funds, henceforth would be allowed to invest up to USD 5 billion or (euro 3.5 billion) and domestic companies invest upto 400% instead of 300% of their net worth.

For individuals too, the overseas investment bar has been raised to USD 200,000 from USD 100,000 per annum. The rupee broke the Rs.40 to a dollar threshold last week at 39.88, and has been steadily rising, reaching 39.63 on Wednesday, 26th, September.

The US Federal Reserveís cut in its lending rate triggered foreign investorsí decisions to invest in Indiaís thriving stock market, with the Sensex already hitting the 17,000 mark on Wednesday. Over the last week, USD 1.5 billion has been invested in Indian stocks, taking the figure to USD 11 billion so far this year, as per the SEBI.

RBIís moves to stem the rupeeís rise would not be enough to check the trend, say analysts. The inflow of the dollar would far outnumber the outflow, barely impacting the rupee-dollar exchange rate.

Exporters were already reeling under the rising rupee over the last few months, and the fresh onslaught has resulted in a fall in the shares of technology firms who rely heavily on outsourcing from the US.

The RBIís latest measures are seen as part of the apex bankís moves to create a fully convertible rupee, recommended by the Committee on Fuller Capital Account Convertibility.

The Committee has prepared a five-year plan to make the Indian currency fully convertible. Presently, the Indian currency is partially convertible, necessitating RBIís approval for all capital account transactions.

Related Readings

»RBI up in arms against automatic FDI in realty
»RBI permits Overseas Remittance upto USD 100,000
»RBI Likely To Review FDI and FII Sectoral Caps

Add to your Social Bookmarks:
ADD TO DEL.ICIO.US ADD TO DIGG ADD TO FURL ADD TO NEWSVINE ADD TO NETSCAPE ADD TO REDDIT ADD TO STUMBLEUPON
ADD TO TECHNORATI FAVORITES ADD TO SQUIDOO ADD TO WINDOWS LIVE ADD TO YAHOO MYWEB ADD TO ASK ADD TO GOOGLE  

 

 

Return to India

NRI INSURANCE

NRI SERVICES

 

Indian Cities Guide

DELHI   NOIDA   GHAZIABAD
         
GURGAON   MUMBAI   AHMEDABAD
         
KOLKATA   CHENNAI   HYDERABAD
         
BANGALORE   PUNE   CHANDIGARH
         
..More cities »
NRI Communities in Different Countries  
Indian Embassies & Consulates in Different Countries
 
NRI Newsletters  
NRI Feeds - Syndications