Money on the markets
A maturing market amid the mayhem
(Any opinions expressed here are those of the author, and not necessarily those of Thomson Reuters)
As the end of 2012 approaches, investors will likely remember this as a bipolar year for Indian markets.
Calibrations about the economy, interest rates, and the government’s ability to respond to these challenges have undoubtedly been the key themes of the year.
from India Insight:
Sometimes people suspect that the grass is greener in the next field ... but they're not always right.
Consider this. India's gross domestic product has grown about 7 percent on an average per year for the past nine years. Its industrial growth has been steadily rising since then. Buoyed by economic growth, the country’s capital markets also offered itself as an attractive and inflation beating investment option.
The finance ministry on Saturday said life insurers could sell unit-linked insurance plans without seeking a nod from the Securities and Exchange Board of India (SEBI).
This ends a spat between regulators over the much sought after product. Under the law, such orders issued when parliament is not in session must be confirmed by lawmakers in their next sitting.
It was not the perfect weekend for investors of unit-linked insurance products (ULIP) after market regulator SEBI barred 14 insurance firms from issuing or promoting such plans, which are a favourite among investors.
But Finance Minister Pranab Mukherjee said on Monday SEBI and insurance regulator IRDA have agreed to maintain status quo on ULIPs and also jointly seek a binding legal mandate from an appropriate board.