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South Asian Film Festival in Goa from Fri (June 27) to Mon (June 30)
At Kala Academy, and ESG, Panaji, Goa
http://lists.goanet.org/pipermail/goanet-goanet.org/2008-June/076384.html
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No investment, in any kind of stock market, anywhere in the world is ever
"safe". For example, the BSE index at its peak was somewhere around 20,000+, a
few months ago, and now its fallen to 13,000+. This means, if you had invested
in the index alone, you'd be DOWN by a third of your money.
Going by this alone, it would seem like, the economy in India is doing far
worse than in the US. But the media reports only talk about the bad situation
in the US. How weird !!! I expect the BSE index to fall back to 10,000 or less.
India is expected to have severe inflation (like the rest of the world) for the
next several years. To fight inflation, the RBI would have to keep tightening
credit and raise interest rates. This means, the corporations in India would be
making far less money than they were currently making. So, why would I invest
in these companies in today's world?
At this point, I'd tell people to keep their money wherever they currently
reside and not ship it from one country to another.
Jim F.
New York.
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Q. There are individuals who are not even of Indian origin but would like to
invest in the Indian market. Now is that possible?
The best way they can enter the market is through FII Mutual funds which is
registered in the U.S and which is investing in India. Today, globally most of
the advanced markets have India specific funds. For instance Japan had come out
with India specific funds. So you never knew whether that money is going to
Brazil or Thailand or to Malaysia or India. At present there is quite an amount
of interest in Indian equities. So most of the Mutual funds investing in Indian
equity have India Specific Funds. That way you can put in your money and rest
assured that your money is safe.
-------------- Original message ----------------------
From: <[EMAIL PROTECTED]>
>
> ---------------------------------------------------------------------------
> **** http://www.GOANET.org ****
> ---------------------------------------------------------------------------
>
> South Asian Film Festival in Goa from Fri (June 27) to Mon (June 30)
>
> At Kala Academy, and ESG, Panaji, Goa
>
> http://lists.goanet.org/pipermail/goanet-goanet.org/2008-June/076384.html
> ---------------------------------------------------------------------------
>
>
> FAQ: how to invest in Indian stock markets
>
For most NRI's the difficult part about knowing how to go about
investing in the Indian stock markets is finding one place where they can get
all the required information. To start off with, there is definitely quite an
amount of paper work. For instance you would need to open bank accounts and
complete other related formalities. But what investors prefer is to have an
account with a good bank, open an account with a good stock broker and be
> comfortable that their funds are safe and that all trades would be executed
> fairly and transparently.
>
> So here are the basics on how an NRI could invest in the Indian stock markets
>
> Q. How do NRI's get started once they decide to invest in the Indian
> stock market?
> A: Firstly they need to open a bank account and decide whether they need to
> trade on a repatriable or a non repatriable basis. Now those who already have
> bank accounts should check with their bankers to find out whether those are
> suitable for stock trading. Know that you can nominate only one bank account
> for
> your stock trading. Some of the leading private banks are competent in this
> regard and can help you open an account through the internet that can be
> faster.
>
> Q: But isn't that cumbersome paper work?
> A There is definitely some amount of paper work to be done. But if you
> download
> the application form from the bank's website it will be a lot faster. If you
> want to do it through the internet, you would have to get copies of your
> passport, may be some bank statements in original. But the advantage with
> bigger
> banks is that all such information would be available on the website so you
> would not have much of a problem.
>
> Here's an overview of the Indian stock market
>
> With over 20 million shareholders India has the largest investor base in the
> world after the US and Japan. Investors from all across India invest in
> shares
> and debentures, mutual funds and securities among other investment tools.
> Shares
> can be traded in BSE (Bombay Stock Exchange) or the NSE (National Stock
> Exchange). Investors can trade on line or over the phone through the help of
> an
> intermediary. Indian investors can buy shares on day to day basis or use the
> futures and options route. Futures and options route is a contract that seeks
> assurance from an investor that he/she will trade in a stocks at a future
> date.
> NRI's can invest in the Indian stock market under PIS (Portfolio Investment
> Scheme) which is regulated by RBI and NRI's are not allowed to trade in the
> stock market on day to day basis. Stock market in India has been an
> unprecedented boom in the past year with the Sensex recently hitting a new
> high
> by bridging the 7500 mark. There are 23 recognised stock exchanges
> in India but the most active ones are the NSE and the BSE. NSE set up has a
> model exchange as a fully automated screen based system. BSE one of the
> oldest
> in the world accounts for the largest number of listed companies has also
> started a screen based trading system with the introduction of the Bombay
> online
> trading system. Regulations on the capital markets and the protection of
> investors interest is primarily the responsibility of the Securities and
> Exchange Board of India (SEBI) headquartered in Mumbai.
>
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