09 January 2012
Policy Chairman of the City of London Corporation welcomes
Indian financial reforms
Commenting on reports that the Government of India will allow
qualified foreign investors to directly invest in Indian equity
markets, Stuart Fraser, Policy Chairman at the City of London
Corporation, said:
“Following a difficult year for Indian equity markets, it is
very positive to see the Indian Government responding with measures
to make direct investment by foreign pension funds, investors and
trusts possible. India has the potential to be a very attractive
investment destination, and Foreign Institutional Investors are
already a major source of capital in the equity and corporate debt
markets. These new measures to simplify the processes for direct
investment are a welcome acknowledgement of the value which foreign
investors bring to India.
“This liberalisation of rules for equity investments sees 2012
off to a very positive start, one that I hope to see develop over
the year – crucially - with further progress on FDI policy and
banking reform. This process of reform recognises that India is a
growing part of the global economy, and benefits from the
investment made by companies from London – and across the
globe. Apart from creating additional economic activity and
generating employment, foreign investment also facilitates the flow
of technology into India and helps industries to become more
competitive.
“I hope too that the new investment rules will encourage
financial institutions to help their customers invest directly into
India, increasing the funding that India is seeking for
infrastructure development and to fund India’s growing
businesses.”
Ends
Notes to editors
- Press enquiries
John Park, Press Officer, City of London Corporation
Tel 020 7332 3639 / Mobile 07824 343 456
Email
john.park@cityoflondon.gov.uk
- About the City of London
Corporation
The City of London Corporation is a
uniquely diverse organisation. It supports and promotes the City as
the world leader in international finance and business services and
provides local services and policing for those working in, living
in and visiting the Square Mile. It also provides valued services
to London and the nation. These include the Barbican Centre and the
Guildhall School of Music & Drama; the Guildhall Library and
Art Gallery and London Metropolitan Archive; a range of education
provision (including three City Academies); five Thames bridges
(including Tower Bridge and the Millennium Bridge); the Central
Criminal Court at Old Bailey; over 10,000 acres of open spaces
(including Hampstead Heath and Epping Forest), and three wholesale
food markets. It is also London’s Port Health Authority and runs
the Animal Reception Centre at Heathrow. It works in partnership
with neighbouring boroughs on the regeneration of surrounding areas
and the City Bridge Trust, which it oversees, donates more than
£15m to charity annually.
- How the City of London enagages with
India
The City of London has long recognised the
critical importance of India to the UK-based financial services
industry, and it is committed to making the best possible use of
existing cultural, linguistic, political and trade relationships.
The rapid growth of the Indian economy brings a demand for
international financial services - both to provide capital, risk
management and expertise for companies as they expand - and to meet
the needs of its growing middle classes, in areas such as savings
products, pensions, insurance and wealth management. An important
part of the City of London’s work is to help UK-based firms to
access Indian markets, and to promote a genuinely two-way exchange
of trade and investment in financial and professional services. The
City of London’s engagement with India is guided by the City of
London Advisory Council for India and delivered by City Office in
Mumbai. The City of London Advisory Council is comprised of senior
Indian financial sector leaders and provides a formal structure for
engagement with Indian financial services firms at a senior level,
and expert guidance and advice on their domestic
markets.