NO way….

The FII are not interested to reverse their positions in India. The short selling by borrowing will open a new window of opportunity in the financial sector of lending and borrowing the shares from our MFs and DIIs. The financial reforms will be done with this bitter experience likely to provide a congenial environment that encourages the local money flow to capital markets. The reports suggest that 2% of Indians are investing and then imagine this be 10% in next 5 years, and the Index levels. But for now the markets are in full FII selling grip, there was no bad news except their bad financial conditions.

The bleeding in the Asian markets continuing and we can be no exception for today. Unless the FIIs agree to reverse their positions, the situation can see no light for next one month. The over done of FIIs shows their nature of investment style and the good part is to place some restrictions on their distress selling to curb this kind of mayhem in markets. The emerging markets are by nature young and can not take the load in the cases of crisis of the present nature.

The FII investment guidelines shall carry a clause that they shall invest for long term at least for 5 years and they shall not press the selling button for not more than 10% their holding thorough open market operations, can resort for off market bulk deals.