Central Bank should introduce full convertibility of Rupee. This would enable direct investments by investors themeselves rather it being routed through FIIs funds that are investing money for unknown individuals or organisation. SEBI allows various modes of FII investing including Participatory Notes. The main problem with FII investment is the source of funds and their beneficiaries can never be determined. Today India is ready for full convertbility on financial and economic fundamentals. Therefore, now that there is a requirement of more than USD 70 billion for financing infrastructure and for other channels of business ventures in the next five years, it is appropriate that Rupee be a global currency which can be purchased at various markets for routing to India.
