The number of companies listed on the BSE at the end of December 1994 was 4,702. This was more than the aggregate total of companies listed in 9 emerging markets (Malaysia, S.Africa, Mexico, Taiwan, Korea, Philippines, Thailand, Brazil and Chile). The number of companies was also more than the that in developed markets of Japan, UK, Germany, France, Australia, Switzerland, Canada and Hong Kong.
There is a large presence of FIIs in the Indian capital market with over 451 FIIs and 38 foreign brokers registered with SEBI. The cumulative investment of FIIs in the Indian stock market stood at US$ 6.59 billion in July 1996 and US $12 billion in April 2000. Current list of debt funds approved by SEBI includes UBS, HSBC, Morgan Grenfell, Peregrine, Buchanan Capital, amongst others to aggregate US$ 1.4 billion. The recent decision of the government of easing limits on inward portfolio investment, with an increase in the ceilling for FII and non-resident Indians from 24 percent to 30%, provides a tremendous incentive to FII investment. FIIs are also permitted to invest self owned funds in the debt market and in unlisted securities.
The capital markets in India are regulated by the Securities and Exchange Board of India (SEBI) under the provisions of the Securities Contracts (Regulations) Act, 1956 and Securities and Exchange Board of India Act, 1922. SEBI has issued detailed guidelines for capital issues, disclosure by public companies and investor protection. |
