SHOULD INDIA OPEN ITS FINANCIAL SECTOR FOR FORGEIGN PLAYERS

[abha]

Hello Everyone,

Recently, Mr Kamal Nath replied to the question posed to him...regarding opening of financial sector for foreign players. He replied that if you open labour market for us, we will do it for you. Labour market means more jobs for indians abroad especially US
What do you all think, should financial sector be opened up??

Regards,
abha

[anant1a]

WELL VERY Good Topic...

Opening Financial Sector means lot of us.
BUt as of now its not needed as too much Money Pouring in and we arent able to regulate it.. We need Good Regulator body to use this money and Do betterment of India...

Allowing Foreign Players in Finance Sector then we need lot of Screening to be done on them coz Foreign players may harm our growth and economy...

Also Seeing Signs of Recession in US asking for Labour makerts doesnt make sense as Dollar is weaking and Indian goin thr for work wen there is ample of employment opportunity in India..

I think We should not allow Foreign Players for nearly two years atleast unless we have good Regulatory Board in place to manage all Actions of Finance Sector..

Thanks,

Anant

[aakanksha_raheja]

i agree with anant on the choice of topic...

The past 17 years of liberalisation has only seen increased efficiency in different sectors, even in the financial sector. letting foreign players in, will Increase the competition which will bring about consolidation (as we already see in the banking sector), and efficient utilisation of available resources. Yes there are risks - but with adoption of prudential , regulatory, supervisory, and technological framework on par with international best practices will help in reducing risks

[deepakraam]

Yeah...India can wait for some more time to open the financial sector for the foreign players.As someone suggested in the forum already about the regulation of FII,I guess we shud be cautious in regulating the FII inflow.Once we have a very well-defined process in place we can open the economy.We can try to convince the foreign players for more FDI than FII .India has pool of skilled manpower with which we should try to convince the foreign players to open more FDI in emerging sector.FDI is more reliable than FII in the aspect that it will employ more people and operating costs in India will be lower when compared to most of the developed nations.So its like a win-win situation.This will inturn help India to prosper better.

-Deepak.

[abha]

Thank you for giving your opinion. As talked earlier, some feels that we should wait for opening our financial sector. Now the point is HOW LONG?

Everyday its highlighted in newspaper abt the turmoil caused because of rupee appreciation, is this not the right to time to open up. See from the point of view of jobs, India is losing is its low cost advantage and outsourcing business is moving to china, Malyaisa and some counties like Spain.

but to mitigate all these reasons is just one thing...IS RBI STRONG ENOUGH TO ACT AS REGULATOR in front of the lobby of large investors??

Please participate more in this discussion becoz...somehw our future is depenent on this upcoming sector

Regards,
Abha

[shobhit18aug]

i think this is the right time to open fin sector fr foreign players becoz rupee is appreciating and our GDP is on right pace.but the main prob is tht v dnt have strong regulating and monitoring body which can perofrm against ny froud.and the nxt prob is whn v are not able to utilize our foreign reserve properly thn how we will manage more money inflo so v hv to make a proper frame work under the guidence of RBI,SEBI n a Board of CEOs of indian companies as soon as possible.

[pyro]

Lookin at the general opinion, it seems that we have shed our pessimism as a nation... India has never had such a phenomenal growth rate both as a nation as well as a financial center..But mind you, a volatile stock market still reflects an unstable economy.Hence financial regulation by the SEBI, though satisfactory must be strenghened further for Full Capital Account Convertibility. Also securitization and factorization of instruments must be looked into..This became clearer when India faced the Participatory notes dilemma. Hence opening up the financial sector is still not a gr8 idea for another two years.

[simran_bhatia]

i think it would help a lot in increasing the growth of money market in India... so it should be opened up as it would also helps in making our money strong...

[id_roop]

yaar mujhe stock mkt se related project bhej do

[deepakhm]

I strongly blieve that india should open its financeial sector for foreign players,.... and the focus should be given to 'Micro-Finance', b'coz this will give self employment and technology improvement in below povery line sector.... and rural sector

As the economy is in boom, and foreign investors are keen to invest money in India, we also should take the opportunity to use the funds for development, instead of showing our unablity to manage the same

regards

Deepak