The government “decided to allow qualified foreign investors to directly invest in Indian equity market in order to widen the class of investors, attract more foreign funds, and reduce market volatility and to deepen the Indian capital market,”
Before only institutional investors and Indians living abroad were allowed to invest directly in local companies. The move will allow individuals to buy as much as 5% of a company’s shares.
http://business.blogs.cnn.com/2012/01/03/india-opens-up-to-foreign-stock-investors/?hpt=hp_c3
Will the foreign investment will further reduce? Do GOSL has to worry about this?