• Capital Account Convertibility - a Road Less Travelled
    debt. Thus, Capital Account Convertibility is of futuristic importance to India as it is still in fluid state. And therefore, it is a topic of interest. Considering the impact it may have on Indian economy, there is a need to study and understand this subject. CHAPTER 2 RELATED REVIEW...
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  • Operation
    number of billionaires in India, not through entrepreneurial profit but through untaxed capital gains. This massive inflow of portfolio investments does not have any positive impact on the productive sectors of the economy. Question : 1) What is capital account convertibility? 2) What are the risks...
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  • Currency Convertibility
    Economy refers to the abolition of all limitations with respect to the movement of capital from India to different countries across the globe. In fact, the authorities officially involved with CAC (Capital Account Convertibility) for Indian Economy encourage all companies, commercial entities and...
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  • The Debate on Capital Account Convertibility in India
    beneficial to the Indian economy in a long run rather than running for full CAC. Abbreviations: CAC: Capital Account Convertibility FCAC: Fuller Capital Account Convertibility CRR: Cash Reserve Ratio GDP: Gross Domestic Product FDI: Foreign Direct Investment RBI: Reserve Bank Of India FII...
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  • Capital Acount Convertibility
    liberalisation can be beneficial when countries move in tandem with a strong macroeconomic policy framework, sound financial system and markets, supported by prudential regulatory and supervisory policies. Objectives and Significance of Fuller Capital Account Convertibility (FCAC) in the Indian Context...
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  • IT Engineer
    widely quoted study, Dani Rodrik (1998) finds little evidence of any significant impact of capital account convertibility on the growth rate of a country. Worse, a 1999 World Bank survey of 27 capital inflow surges between 1976 and 1996 in 21 emerging market economies found that in about two-thirds...
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  • Capital Flows to India
    Sterilisation (Chairman: Smt Usha Thorat). BIS Papers No 44 263 ——— (2007a): Annual Report for 2006-07. ——— (2007b): Handbook of Statistics on the Indian Economy, 2006-07. ——— (2006): Report of the Committee on Fuller Capital Account Convertibility (Chairman: S S Tarapore). ——— (2008): Annual Policy Statement for the Year 2008-09....
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  • Capital Ac Convertibility Impact on Indian Economy
    CAPITAL ACCOUNT CONVERTIBILITY - A DISCUSSION PAPER ON ITS IMPACT ON THE INDIAN ECONOMY EXECUTIVE SUMMARY The history of convertibility of currencies is an instructive and inevitable part of the concept of capital account convertibility. At the time of the establishment of the IMF and the World...
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  • Indian Currency Market
    . Figure 4: Foreign Capital Inflows But economists say that jumping into capital account convertibility game without considering the downside of the step could harm the economy. The main reasons for being over cautious in adopting CAC are:1. The East Asian economic crisis is cited as an example by...
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  • International Capital Movement
    economy. Under the liberalized foreign exchange transactions regime, the results were dramatic. The liberalization of the portfolio investment led to a surge in inflow of capital for investment in the primary and secondary market for Indian equity and corporate (and subsequently sovereign) bond market...
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  • Foreign Direct Investment in Nepal
    scheme, the adoption of a current account convertibility system and liberalization of the exchange rate regime. A reversal in the rising trend took place from the beginning of the 2000s. All in all, FDI inflow is the lowest in Nepal even when compared with other landlocked countries (World Bank, 2003...
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  • Convertibility of Rupee
    hedge risks. But it is really the wider impact of capital-account convertibility on improved growth and productivity in the industrial and financial sectors that would make India’s operating environment more attractive for foreign companies. Balance of trade with India Monthly CC inflow &amp...
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  • Capital Account Convertibility in India
    be appreciated. The research suggests that there is no tearing urgency about Fuller capital account convertibility. However it must be emphasized that only over time will the Indian economy be mature enough to be comfortable with full capital account convertibility - financial markets will deepen...
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  • International Capital Flows
    large and sudden have important implication for economies. When capital inflows are large, they can lead to an appreciation of real exchange rate. He concludes that the capital account liberalization is not a discrete event. Khanna (2002) examines the macro economic impact on Indian capital...
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  • Commitee on Fuller Capital Account Convertability
    EEFC EMEs FATF FCAC FCNR(B) FDI FEMA FII FIMMDA FRA FRBM FSI GDP GETF G-Sec HRD HTM IAS ICAAP European Community External Commercial Borrowing Exchange Earners’ Foreign Currency Emerging Market Economies Financial Action Task Force Fuller Capital Account Convertibility Foreign Currency Non...
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  • Foreign Investment in India
    mandate of encouraging FII flows, the available arguments that mitigate the costs have also been included under the relevant points. Benefits Reduced cost of equity capital FII inflows augment the sources of funds in the Indian capital markets. In a commonsense way, the impact of FIIs upon...
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  • Capital Account Convertibility
    quantities of capital inflow to India in that view did not justify the risk of opening the economy. By August 1994, India was forced to adopt full current account convertibility under the obligations of IMF’s article of agreement (Article No. VII). The committee on Capital Account Convertibility...
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  • International Finance
    is CAC different from current account convertibility? Current account convertibility allows free inflows and outflows for all purposes other than for capital purposes such as investments and loans. In other words, it allows residents to make and receive trade-related payments — receive dollars (or...
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  • Understanding India's Regional Trade Arrangement and Foreign Direct Investments
    achievement as well as failures. Achievements included restoration of economic growth, stability in the inflation rate, favorable current account Balance of Payments (BOPs), increasing trade openness, mounting FDI inflows, strong foreign exchange reserves, public-private dichotomy, reduction of...
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  • Fiis and Its Growth in India
    in the global market place. This directly benefits the economy and the country. The positive investment climate and the economic growth have made India an attractive destination to FIIs to pour in foreign capital. However, there also exists an unappreciable volatility of FII inflows and its impact on...
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