India story endures, over 100 new FIIs entered in last six months

The Sensex has fallen 31.91 per cent and foreign institutional investors have pulled out over $8.35 billion from Indian markets since September 2008. However, these negative factors have not prevented more foreign investors from coming to India. The number of new FIIs and their sub-accounts have gone up significantly, indicating that foreign inflows will pick up once the sentiment takes a turn for the better.

As per records available with Sebi, as many as 108 new FIIs have registered with the market regulator, taking their total number to 1,625 by March 13 this year from 1,517 in September 2008. The number of FII sub-accounts has also shot up from 4,620 to 4,991. Sub-accounts include foreign corporates, foreign individuals and institutions, funds or portfolios established or incorporated outside India on whose behalf investments are proposed to be made in India by an FII.

The new funds that have entered India include US-based funds like Young Mens Christian Association, Wanburg Pincus International, California Endowment and Managers Funds,

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Reserve Bank of India scotches ICICI Bank rumours, Government says don’t panic, we are watching

Finance Minister P Chidambaram and regulators, SEBI and the RBI stepped in to soothe financial markets today after the benchmark Sensex plunged 442 points or 3.5 per cent to its lowest levels in two years and panic gripped ICICI Bank customers who queued up outside ATMs in certain cities to withdraw deposits. Their assurances helped and the market closed 2.1 per cent up at 12,860 points.

Barely minutes after the market opened sharply lower, SEBI chairman CB Bhave who was in Delhi allayed fears of the impact of the global credit crisis on the Indian markets. “There is no panic... we are monitoring the situation closely. We will take the severest action against any institution circumventing our short-selling rules,” he told reporters before his meeting with the Finance Minister and other officials in North Block.

After a meeting with Bhave and economic affairs secretary Ashok Chawla, Chidambaram said, “We are suffering the consequences of turbulence around the world. Basically, the Indian market is a sound, attractive and well-regulated market.”

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