nifty signals Trading System for the day trading in stocks, commodities, currency, with buy sell signals
Investment limit by all registered FII or sub accounts in primary or
secondary markets under Portfolio Investment Scheme is subject to a ceiling of
24 % of issued share capital of a company.
The limit can be extended up to 49 % per sectoral cap if the general
body of the company approves it. It is
important to know these methods before entering the stock market as
investor or broker. One must have
knowledge about the stock market; that is true but equally essential is
to know this theory which helps in making trading strategy.
FACTORS FORMING NEED FOR FOREIGN CAPITAL IN INDIAN STOCK MARKET
1. 1. Development
of basic infrastructure: The
development of any economy depends on the available infrastructure in that
country. The infrastructure facilities
such as Roads, Railways, sea ports, ware houses, banking services and insurance
services are the prominent players. Due
to long gestation period naturally individuals will not come forward to invest
in infrastructure industries. Government
of India could not able to raise necessary investment. To fill the gap foreign capital is
highly suitable. After the great fall of
2008, no technical analysis could prove effective enough to predict such
a huge bull rally on DALAL STREET.
It happened simply because heavy flow of FII especially in
infrastructure projects.
2. 2. Rapid
Industrialization: The need for
foreign capital arises due to the policy initiatives of the Government to
intensify the process of industrialization.
For example the government of India is gradually opening the sectors to
foreign capital to expand the industrial sectors. The FDI in retail sector is latest one
instance which reflects the firm decision of govt. to liberalize it to the
extent possible.
These are the two main decisive
factors which amount to deciding investment limit in Indian stock market.
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