Article: India should not set up a sovereign wealth fund: SEBI.

India should not set up a sovereign wealth fund: SEBI

New Delhi, May 4 (PTI) -- Warning that capital flows can reverse, a SEBI study said India should not set up a Sovereign Wealth Fund (SWF) using the high foreign exchange reserves hovering around USD 250 billion.

"India's foreign exchange reserves are built on capital account inflows and hence it is subject to capital flight ... funding an SWF from capital account surplus is risky since the capital flows can reverse their direction any time," said a report prepared by officials of the Securities and Exchange Board of India (SEBI).

Arguing against setting up of a SWF by India, the report, ...

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