Performance Magazine Issue 28

After experiencing a bitter economic crisis in 1991, India significantly liberalized its economy in 1992. The reform saw considerable easing of government control over foreign trade and investment and the abolition of the License Raj across many sectors. The economic reform also resulted in the increased access of foreign investment in several sectors, with the list expanding ever since. Foreign investors were formally allowed to access Indian capital markets in late 1992. In 2014, the former FII regime was replaced with the Foreign Portfolio Investor (FPI) regime, which allowed all types of investors to invest in Indian capital markets subject to anti-money laundering and KYC checks. A FPI license is now issued by the local sub-custodian unlike in the past where the FII license was issued by the regulator. SEBI remains committed to FPI reforms and I have personally witnessed the efforts as a member of the H R Khan Committee.

During the last 26 years, the market capitalization of Bombay Stock Exchange (BSE), Asia’s oldest stock exchange has grown from US$123 billion to US$2 trillion. The current market capitalization of the other leading stock exchange i.e. the National Stock Exchange (NSE) is more than US$2.27 trillion making it the world’s eleventh largest stock exchange.

The Indian economy is currently the sixth largest in the world in terms of nominal GDP at US$2.6 trillion. Since liberalization, India’s GDP has grown at an average rate of 6 percent to 7 percent year on year and since 2014 (excluding 2017) Indian economy has been the fastest growing major economy worldwide. India remains an attractive destination for long-term growth, relying on the positive factors such as the population dynamics, the growing middle class and the continued push towards economic reform.

• What lies ahead for the Indian investment market?
  Interview with Mr. Ashwini Agarwalm, Portfolio Manager and Designated Partner of Ashmore India.
• Foreign portfolio investment in India
• Doors opening for FPIs in India
  Interview with Aditya Sharma Director, Head of Prime, Futures & Securities Services, Citi South Asia.

• Implementation of General Anti-Avoidance Rule in Indian tax law 
• The investment fund industry 
  The latest trends in a dynamic market
• ESG: shaping the new normal for active managers

• The new benchmark rate for euro transactions
  Here comes "ESTER"
  
• A physically, mentally, and financially demanding endeavor
  The athlete's lifecycle 
• FinSA and FinlA and their impact on independent asset management in Switzerland
  The (partial) beginning of a new area