INSUBCONTINENT EXCLUSIVE:
weightage on key gauges after suggested recasts to the matrix had threatened to lower the weighting instead of raising it in kilter with New
knowledge of the matter told ET
economic parameters.
For instance, foreign portfolio investors have 22 per cent holding in India compared with 12-15 per cent in China.
An
email sent to Sanjeev Sanyal's official Id remained unanswered until publication of this report
There were no official comments from the government on the MSCI-related discussions
Further, market participants have also asked MSCI to reconsider its recent proposal to exclude depository receipts while calculating
foreign ownership limits (FOL) in Indian securities, sources said
The development comes at a time when several leading global custodians and foreign portfolio investors (FPIs), such as Deutsche Bank, have
urged the MSCI to reconsider this proposal
Deutsche Bank is one of the largest custodians in India.
The Global Depository Receipts (GDRs) market is claimed to be liquid, with the
Custodians/investors have cited healthy daily volumes in American Depository Receipts and GDRs as they pitch to include those securities for
said Suresh Swamy, partner, PWC
FIF indicates the total proportion of shares in a company readily available for FPI buying
Until recently, MSCI considered both on-shore shares and off-shore stock for calculating FIF
But it has now proposed to exclude Depository Receipts.
This would immediately reduce the free-float shares available for the purchase of
FPIs, thereby bringing down the weight of the company
Currently, these banks are not part of many MSCI indices due to the limited additional stock available to FPIs.
