Panel to look into financial reforms: Fin Min
New Delhi: A panel of experts will review over the next three months how to encourage foreign investment in the financial sector such as the bonds and the stock markets, the government said on Thursday.
The panel, which has experts from both the private and the government sectors, will "identify challenges in meeting the financing needs of the Indian economy through foreign investment," according to a government statement.
The panel will take views on foreign investments till Feb. 10, the statement said, and will submit its report by mid-March.
The statement comes as Prime Minister Manmohan Singh's government has promised to liberalise the financial sector in its second term to help billions of dollars of Indian and foreign savings into more productive investments.
Federal policy makers, including deputy chairman of Planning Commission Montek Singh Ahluwalia have said that India needs more capital flows especially for infrastructure sector.
"This is a welcome step because at the moment the investment rules are so complex that many investors are unable to understand them," said D.H. Pai Panandikar, head of private think tank RPG Foundation.