Deepak Shenoy, founder and CEO of Capitalmind, has criticized the Reserve Bank of India’s (RBI) restrictions on mutual funds investing in foreign stocks. He argues that the current limit of $8 billion, unchanged since 2009, is outdated and should be increased to $50 billion to promote Indian ownership of overseas assets.
Source:- bbc news
Shenoy points out that while mutual funds face these restrictions, individuals can invest up to $250,000 per person per year in foreign stocks through foreign brokers, highlighting an inconsistency in the regulations. He questions why the RBI maintains such limits, suggesting that allowing more foreign asset ownership by Indians could be beneficial.
Source:- news 18
In a video shared on social media, Shenoy challenges the necessity of the RBI holding large reserves of US dollars, proposing that individual ownership of foreign assets would effectively contribute to the country’s wealth. He believes that a shift in policy could enable Indians to own more global brands and assets through mutual funds, thereby enhancing India’s presence in international markets.
Shenoy’s critique calls for a reevaluation of the RBI’s policies to facilitate greater participation of Indian investors in global markets, promoting a more liberal approach to foreign asset ownership.
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