Dear Editor, Subir Roy has done a fantastic job in analyzing the currrent situation & putting forth his recommendations in a simple & direct manner. Kudos to him, well done. I wish this is implemented. Among other things, I have long been wondering why retial investors have been allowed to invest only Rs 1 Lakh in IPOs. If we allow the retail Indian people to participate more, it insulates us from these FIIs actions & gives us a better chance to build wealth domestically.
May we have more such thought provoking & effective articles from u, Subir!!
RE:RE:India vulnerable to Financial Risk
by lax on Oct 03, 2007 10:28 PM Permalink
yup.. u r right... 1 lac is peanuts nowadays... good suggestion by Subir.. Retail investors need to be encouraged more... lets tap domestic savings first then go for foreign-borrowings.
RE:India vulnerable to Financial Risk
by Archana Lakshmi on Oct 04, 2007 02:44 PM Permalink
What we see now in Indian market is irrational exuberance. No doubt that India, Inc is performing well and in growth mode but the question is whether the current valuations are justifiable. It is sad that our indices are so much dependent on FII and if they pull the plug we are gone. If FII find some other markets that can provide higher returns or if anyother bad news busniess or in the political side, they will take their money out and our markets wil be in big trouble. US markets (NYSE and NASDAG) do not have so much of FII stake like in India and they depend more on their domestic institutional and retail investors. Hope we will get to that soon.
