Instan tip

Will SEBI’s action on P-notes drive away foreign investors?

No. Sandesh Kirkire, CEO, Kotak Mahindra MF
SEBI is within its rights to monitor the inflow of foreign funds into the market. No regulator in the world would like to stop markets from growing. This step will ensure that the source of the inflows is known. Foreign funds are coming to India in search of returns and growth, which is among the highest in the world, and they will continue to show interest in the Indian markets.

No. Alok Vajpeyi, Vice Chairman and MD, Dawnay Day AV
I think the stock market regulator’s move to tighten investment rules for unregistered foreign investors will bring in more transparency into the system. Though liquidity may be affected in the short term, in the long term, it will help consolidate the markets as India’s growth story is still intact. The action is very much in line with globally accepted practices.

No. Paresh Khandwala, MD, Khandwala Securities
SEBI is concerned about the quality of FII money coming into the market. The new norms will definitely curb the backdoor entry of foreign institutions into the market. In fact, once the regulator expedites the process of registration, we will see more foreign funds flowing into India.

(Compiled by Manu Kaushik)