New Delhi: As a major move to invite foreign investment in the country, the Union government is sincerely considering to allow the plum investors like Warren Buffet for directly purchasing equity in Indian companies. Such investors who invest heavily in well known companies at a personal level fall in Qualified Financial Investor (QFI) category.

After increasing the investment limit in government securities and corporate bonds market for the Foreign Institutional Investors (FII), the government is now planning to lure the QFIs.

Actually, the government is expecting more instability in developed economies and therefore to encash the bright opportunity, it has been eying QFIs along with FIIs for investment.

Currently, only overseas individuals with a minimum net worth of Rs 5 crore and registered as a sub-account of FIIs are allowed to directly participate in the stock market.

It is to be noted, rich investors along with foreign banks, insurance companies, pension funds and other financial institutions come under the QFI category.

 According to the Finance Ministry officials, in spite of struggling economy, India’s financial growth rate will be better than other nations. Also, the returns would also be more well off as compared to others.

Therefore, the time is rife to attract foreign investors in India for which the government wants to promote it as a global investment centre favourable for secure and better returns.

On the other hand, the Finance Ministry on Thursday increased the investment limit for foreign institutional investors in government securities and corporate bonds from USD 10 billion to USD 15 billion. Moreover, the investment limit for FII has also been raised to USD 20 billion. This limit is in addition to the investment limit of USD 25 billion in the Infrastructure bonds. 

For the record, the government had raised the limit for the FII in September 2010.

JPN/Bureau