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'Why can't people own the dollars' Deepak Shenoy debates RBI restriction on mutual funds investing in foreign stocks

The article discusses the debate around the Reserve Bank of India's (RBI) restrictions on mutual funds investing in foreign stocks, as highlighted by financial analyst Deepak Shenoy. Shenoy questions why individuals cannot own dollars directly, pointing out the RBI's stringent controls on foreign exchange which limit investments in overseas assets. He argues that these restrictions are outdated in a globalized economy where investors seek diversification and potentially higher returns from international markets. Shenoy critiques the regulatory framework that allows only a select few to invest abroad through mechanisms like the Liberalised Remittance Scheme (LRS), which has its own set of limitations and taxes. He suggests that allowing more freedom in foreign investments could benefit Indian investors by providing them with opportunities to hedge against local market volatility and currency fluctuations, thereby enhancing their investment portfolios.

Read the Full MSN Article at:
[ https://www.msn.com/en-in/money/markets/why-can-t-people-own-the-dollars-deepak-shenoy-debates-rbi-restriction-on-mutual-funds-investing-in-foreign-stocks/ar-AA1wEnXG ]