|
|
Article: India should not set up a sovereign wealth fund: SEBI.
- Article from:
- PTI - The Press Trust of India Ltd.
- Article date:
- May 4, 2009
CopyrightCOPYRIGHT 2009 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
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, ...