1. India not ready for full capital account liberalisation: RBI Dy Guv H R Khan

India not ready for full capital account liberalisation: RBI Dy Guv H R Khan

Currently India allows foreign investors to buy upto $81 billion of Indian debt while...

By: | Mumbai | Updated: January 29, 2015 12:34 PM
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India is not ready for opening its capital account fully to foreign investors at this point in time as the pros and cons of such liberalisation are a “contentious issue”, RBI deputy governor H R Khan said. (PTI)

India is not ready for opening its capital account fully to foreign investors at this point in time as the pros and cons of such liberalisation are a “contentious issue”, Reserve Bank of India (RBI) deputy governor H R Khan said.

Currently India allows foreign investors to buy upto $81 billion of Indian debt while there is no limit restrictions for stock market investments.

In a speech given on Jan. 17 to a management institute and published on the RBI’s website on Thursday, Khan also said the Reserve Bank of India is keen to develop a wide range of derivatives products but with caution, like considering introducing bond futures in other maturities apart from 10-year maturity allowed now.

The RBI is also considering relaxing prudential rules for credit default swaps, which were introduced with a high dose of safety measures and was perhaps limiting liquidity, Khan said.

“It is wise to learn from other’s mistakes and adopt a cautious and gradual approach, recognising at the same time that one cannot cross a chasm in two leaps,” Khan said.

Tags: H R KhanRBI
  1. Suraj Singh
    Jan 29, 2015 at 3:39 pm
    Thanks for updating this news. .Supernova Astralis Noida
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