Recommends RBI to allow NRI currency hedging: Assocham

The Associated Chambers of Commerce and Industry of India (Assocham) recommended that reserve bank should allow NRIs to hedge their currency risk in Indian Currency. The move would help investments in Indian stock markets from NRI's and foreigners. There is a need to revise regulation related to non-resident Indians (NRIs) which are very complex and time consuming. The country has currently same rules for FIIs and NRIs for determining the total investment limit in any company. It discourages NRIs to invest in market. They are also not allowed to invest in Exchange Traded Funds (ETF) as per current rules and the matter demands attention due to its high economic benefits.

President of Asocham, Sajjan Jindal said that the regulators in China reduced Securities Transaction Tax (STT) after recent fall in the stock market and Indian regulator needs to follow the suit for the interests of investors. He also asked RBI to reduce the margin on loan against shares following downfall in market. It was 50 percent when market was booming and still same when market witnessed about 65 per cent downfall.

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