Question: Can non-residents invest in Indian Government bonds? What are the potential benefits? Answer: Foreign investors are allowed to purchase Indian Government bonds. Since October 2023, non-residents have invested nearly $11 billion in these bonds, with an additional $5 billion through dollar-settled, rupee-denominated supranational bonds. Last month, following the inclusion of Indian Government bonds in the J.P. Morgan Emerging Market Bond Index, $2.3 billion was invested. This inclusion will prompt index-tracking funds to buy Indian bonds, increasing demand and potentially lowering long-term borrowing costs for businesses, stabilizing the rupee, and improving the country's balance of payments. It is projected that around $25 billion in foreign investment will enter India by March 2025. Attractive features for foreign investors include positive real yields, low rupee volumes, a supportive macroeconomic environment, robust defenses against market volatility, and fiscal consolidation.
Question: Has the Indian Government made progress in providing housing for all citizens? Are there plans to accelerate house construction for vulnerable groups? Answer: Under the Pradhan Mantri Awas Yojana, over 42 million new homes have been built in the past decade, but this falls short of meeting all housing needs. This year, financial aid will be provided for the construction of an additional 30 million housing units to boost affordable housing supply. The Central Government will allocate Rs807 billion, contributing Rs100,000 to Rs267,000 per house under various scheme components. This initiative is expected to significantly stimulate the economy, as the real estate sector is connected to over 250 ancillary industries and is the second-largest job provider. New housing in urban and rural areas, along with transportation projects for last-mile connectivity, will create numerous employment opportunities and alleviate congestion in metropolitan areas. Incentives such as interest rate subventions are offered to buyers of small houses, and developers of affordable housing projects receive tax benefits for capital expenditures.
Question: I frequently receive unsolicited investment advice on stocks and shares. Are there regulatory protections for naive investors? Additionally, what are the delisting guidelines for Indian shares I own? Answer: The Securities and Exchange Board of India (SEBI) has banned registered advisors from collaborating with unregistered influencers who guarantee investment returns. Regulated entities are prohibited from partnering with anyone who offers investment advice or claims of returns. Regarding delisting, a fixed price process is now an option to reverse book building, with a mandatory 15% premium over the floor price for delisted shares. The counter offer threshold has been reduced from 90% to 75%, provided that at least 50% of shareholders tender their shares.
