India, home to Asia's oldest stock exchange, erected barriers to overseas investment in shares on concern record inflows are a threat to economic growth.
M. Damodaran, chairman of the Securities & Exchange Board of India, said hedge funds and other investors must be regulated in their home country before they can apply to invest in Indian stocks. The regulator also scrapped offshore securities linked to derivatives, confirming proposals made last week.
Finance Minister Palaniappan Chidambaram said ``bubbles'' in stocks and real estate may hamper growth as inflows drive the rupee to a 9 1/2-year high and stoke inflation....MOREUpdate: The WSJ's Real Time Economics blog just put this post up:
Paulson’s Message to India: Let the Foreign Capital Flow
