FM & SEBI has been sleeping all the while when markets were rising with excessive liquidity of FII money through PN,and didnt even gave a hint that they were formulating such a proposal of disallowing investments by FIIs through PN route until suddenly, ppl saw breaking news on tv on Tuesday evening .While everyone in govt ,even the FM were congratulating themselves knowing well that FII money inflows has been surpassing old times till recently when sensex touched 17000,they even took the credit for that FIIs are putting large chunks money because of govts sound fiscal management.
Now,instead of being just watchful of anonymous foreign money through PN route ,they are putting draconian blanaket ban on FII money through PN route in the name liqudity,rising rupee,terrorism , and god knows what else.
Money is coming to india because we are growing at 9% per annum, because ppl all over the world believe in the new india story.Indian retail investor suffer the most when market sentments are hammered in this brutal& artificial means. If govt goes on acting this immaturely and continue play with countris financial market sentiments ,forget FIIs even domestic investor wont dare to enter stock markets and so we may go back to our bullock cart days.
