Overseas investments into the Indian capital markets surged to Rs 1.84 lakh crore in the first eight months of the current fiscal despite the end of 'Quantitative Easing Programme' by the US Federal Reserve, government said today.
Total net investments in securities by Foreign Portfolio Investors (FPIs) stood at Rs 51,649 crore for the full 2013-14 fiscal.
With higher forex reserves, low current account deficit, easing inflation and firm commitment of the government to fiscal consolidation, end of QEP by the Fed did not appear to have adversely affected Indian bourses, Minister of State of Finance Jayant Sinha said in a written reply to the Rajya Sabha.
"There has been a robust inflow of Foreign Institutional investors (FIIs)/Foreign Portfolio Investors (FPIs) in both equity and the debt markets in India despite the end of QEP," Sinha added.
The Fed has been cutting down on its QEP, which ensured easy money availability in the system as part of efforts to boost the American economy after the 2008 financial crisis.
The minister also said that the government and the regulators "maintain constant vigil in the market and have put in place practices to promote a safe, transparent and efficient market".
"The system instituted includes advanced risk management mechanisms comprising continuous monitoring and surveillance, various limits on positions, margins requirements, circuit filters etc," Sinha noted.
"The systems and practices are reviewed continuously and modified to meet emerging needs," he added.
