BANKS & FIs MAY SELL FOREIGN STOCK

Indian Policy makers are vetting a proposal to allow Financial Intermediaries (FIs) to offer a product that will enable local investors to invest in stocks of foreign companies up to an annual limit of $ 100,000. Rules governing outbound foreign investment administered by the central bank provide for local residents to invest up to $ 100,000 annually in stocks or property abroad. However, the catch is that both local and foreign financial intermediaries are forbidden from marketing investment products to investors here. Banks and institutions are yet to secure an approval from the banking regulator, although, technically, the rules provide for investment abroad for individuals.