FII, QFI, NRI AND FVCI TO COME IN SINGLE WINDOW—STOCK
MARKET TO EXPAND
It is like imaging a world without borders where FII is equal
to NRI is equal to FVCI which together will form QFI. The only discrimination
is between portfolio investment and non portfolio investment. Though it appears utopian scheme; however if
Finance Minister P. Chidambaram is to be believed this dream could be soon a
reality. Stock market will gain
massively from this development and nifty will witness a quintenessial
inflow of fund. The intraday traders
in nifty future and nifty option will see a new age of
investment. Marching ahead in the stock
market momentum, two committees have been set up to map the mirage. One committee under the former cabinet
secretary to look at harmonizing portfolio investment routes—and another by the
finance ministry under the economic affair secretary to define what
distinguishes FDI and FII. Imagine that
a single portfolio investment!! This
will have increased possibility of hitting intraday tips. The trading strategy shall encompass nifty trading system in a more comprehensive way.
QFI would herein become the vehicle for convergence of all portfolio
routes despite it being in the fourth category.
The intraday trading software will expect to materialize it to do
intraday trade in a more assured manner.
In fact, the genesis of the three routes, which was FDI, FVCI and FII is
based on the investor category. So short
term investment comes in through, traditionally, or FII route, medium term
investment how funds invest was supposed to be FVCI and the strategic
investment is going to be FDI. This
would reduce the volatility in the stock market and make chart
analysis and technical analysis much easier to predict. It would be much easier to grasp the live
buy and sell signal in the nifty future and a particular stock.
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