Exploring India – 7th Edition

A guide for accessing the India capital market

The Indian economy continues to offer an attractive investment proposition with tremendous opportunities. The government of India has undertaken various key reforms and has liberalized the regulations in various sectors of the economy to improve the ease of doing business.

The capital markets are always seen as a reflection of the economic health and growth of a country. Keeping pace with economic growth, the Indian capital markets have covered a long journey from the days of trading under a banyan tree to embracing the most-advanced technology in the field. Today, the Indian capital markets truly reflect one of the fastest growing economy in the world.

In the last decade, a stable political environment combined with positive macroeconomic parameters and strong policy reforms have propelled India as a leading destination for global investment. India rose to 63rd place out of 190 nations in the World Bank’s Ease of Doing Business 2020 report – up from 142nd place in 2014. Prime Minister Modi aims to make India a USD 5 trillion economy by 2025. In order to achieve this, the government is focused on pro-business policies.

With this backdrop, there is huge potential for global players to invest in the Indian market. In the past years, India has seen an influx of foreign investments. To accommodate this steady inflow, Indian regulators – the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are making significant modifications to the various laws that govern routes of foreign investment i.e. Foreign Portfolio Investors (FPIs), Foreign Direct Investment (FDI), Foreign Venture Capital Investors (FVCIs) etc. that a foreign investor can access, which makes India a more favourable market to attract investors.

As the market regulator in India, SEBI has taken several measures to increase the level of corporate governance, reporting and strict compliance of laws in the capital markets. There has been adoption of legislation that curbs malpractices and frauds in the system, which are being implemented seriously. Overall, sound governance, strong regulatory set up and compliance standards have placed Indian capital markets at par with international standards.

Our 7th edition of Exploring India guide explains the opportunities and challenges of the Indian capital markets and highlights the recent regulatory updates, along with a synopsis of the current status of the Indian investment market.