8th Feburary 2010

Foreign investors in India’s stock and commodity exchanges will soon be able to raise their stakes, as the government plans to raise the cap on FDI by any single investor from the present 5%. However, the overall cap on FDI for these bourses would remain 49%. Once the cap for individual investors is raised, India’s underdeveloped exchange business could receive a fillip, leading to more meaningful competition between the bourses resulting in efficiency of operations and better investor services.