Regulatory Reforms Needed for Ease of Doing Business in India - Viewpoint PaperCUTS International
The key findings of the document summarize recommendations from 5 previous committee reports on regulatory reforms in India. The major recommendations included developing a policy and legislative framework for business regulation, establishing an institutional architecture for regulatory governance, adopting regulatory impact assessments, moving towards optimal regulatory governance, and addressing issues like legal reforms, regulatory overlaps, and environmental clearances. Many recommendations called for a national policy on business development, a new regulatory commission, standardized processes like single window systems, and capacity building efforts. Overall, the reports provided a roadmap for comprehensive regulatory reforms but greater focus is still needed on implementation.
Trend Analysis Of FII and Impact on SENSEX -2015 (Yearly Analysis)Piyush Patidar
⦁ To study the trends and patterns of foreign capital flow into India in the form of FIIs.
⦁ To find relation between FIIs & Sensex.
⦁ To examine whether FIIs have any influence on SENSEX.
This document analyzes the impact of foreign direct investment (FDI) on Sri Lanka's economic growth from 2005 to 2008. It aims to determine the amount of FDI contributed by different countries during this period and identify which sectors received more FDI. It also examines the key issues facing FDI in Sri Lanka and provides recommendations to enhance FDI. The analysis is based on published FDI data from Sri Lanka's Board of Investment. While Sri Lanka has generally benefited from FDI, the government and Board of Investment should consider sector-specific factors to create a sound environment for attracting more foreign investment.
This document provides an overview and synopsis of a study on fixed asset management at LG Electronics India Pvt Ltd in Hyderabad. The objectives are to evaluate fixed asset turnover, analyze fixed assets using ratios, evaluate depreciation methods, examine financing of fixed assets, and offer suggestions for better utilization. Primary and secondary data will be collected from 2005-2011. Ratios and trend analysis will be used to evaluate fixed asset performance over five years. Interpretations and recommendations will aim to enhance fixed asset management.
A Study on Financial Performance in Kumbakonam Mutual Benefit Fund Limitedijtsrd
The document analyzes the financial performance of Kumbakonam Mutual Benefit Fund Limited over a 5-year period from 2014-2019 using ratio analysis, comparative statements, and common size statements. Key findings include that current assets and total assets increased each year, indicating a satisfactory financial position. Current liabilities decreased from 2015-2016 but then increased each subsequent year. Reserves and surplus also increased each year. Overall, the comparative balance sheets show the business moving in a positive direction with growing assets and liabilities. Current assets and current liabilities make up the highest percentages of total assets and liabilities respectively according to the common size statements.
Regulatory Reforms Needed for Ease of Doing Business in India - Viewpoint PaperCUTS International
The key findings of the document summarize recommendations from 5 previous committee reports on regulatory reforms in India. The major recommendations included developing a policy and legislative framework for business regulation, establishing an institutional architecture for regulatory governance, adopting regulatory impact assessments, moving towards optimal regulatory governance, and addressing issues like legal reforms, regulatory overlaps, and environmental clearances. Many recommendations called for a national policy on business development, a new regulatory commission, standardized processes like single window systems, and capacity building efforts. Overall, the reports provided a roadmap for comprehensive regulatory reforms but greater focus is still needed on implementation.
Trend Analysis Of FII and Impact on SENSEX -2015 (Yearly Analysis)Piyush Patidar
⦁ To study the trends and patterns of foreign capital flow into India in the form of FIIs.
⦁ To find relation between FIIs & Sensex.
⦁ To examine whether FIIs have any influence on SENSEX.
This document analyzes the impact of foreign direct investment (FDI) on Sri Lanka's economic growth from 2005 to 2008. It aims to determine the amount of FDI contributed by different countries during this period and identify which sectors received more FDI. It also examines the key issues facing FDI in Sri Lanka and provides recommendations to enhance FDI. The analysis is based on published FDI data from Sri Lanka's Board of Investment. While Sri Lanka has generally benefited from FDI, the government and Board of Investment should consider sector-specific factors to create a sound environment for attracting more foreign investment.
This document provides an overview and synopsis of a study on fixed asset management at LG Electronics India Pvt Ltd in Hyderabad. The objectives are to evaluate fixed asset turnover, analyze fixed assets using ratios, evaluate depreciation methods, examine financing of fixed assets, and offer suggestions for better utilization. Primary and secondary data will be collected from 2005-2011. Ratios and trend analysis will be used to evaluate fixed asset performance over five years. Interpretations and recommendations will aim to enhance fixed asset management.
A Study on Financial Performance in Kumbakonam Mutual Benefit Fund Limitedijtsrd
The document analyzes the financial performance of Kumbakonam Mutual Benefit Fund Limited over a 5-year period from 2014-2019 using ratio analysis, comparative statements, and common size statements. Key findings include that current assets and total assets increased each year, indicating a satisfactory financial position. Current liabilities decreased from 2015-2016 but then increased each subsequent year. Reserves and surplus also increased each year. Overall, the comparative balance sheets show the business moving in a positive direction with growing assets and liabilities. Current assets and current liabilities make up the highest percentages of total assets and liabilities respectively according to the common size statements.
Thesis(project work): portfolio construction using top down approach in indi...Mohammadali Surti
Thesis Project Work on Portfolio Management in Indian Stock Market. It talks about the quantitative aspects considered during the selection of company in portfolio.
Market Timing and Capital Structure Evidence from Hong Kong Listed CompaniesFaye Wang
This dissertation examines the market timing theory of capital structure using IPO data from 227 Hong Kong listed companies from 2005 to 2015. The author tests three hypotheses: 1) Whether market timing behavior exists in financing decisions of Hong Kong companies; 2) Whether there are short-term effects of market timing on capital structure; 3) Whether there are persistent long-term effects of market timing lasting 10 years. Linear regression is used to analyze the data. The results support all three hypotheses and provide evidence that market timing theory applies to Hong Kong listed companies, consistent with studies of developed markets.
ANALYZING FISCAL SPACE FOR HEALTH IN BENUE STATE, NIGERIAHFG Project
The document analyzes potential fiscal space for health in Benue State, Nigeria. It finds that Benue State could expand fiscal space for health through several approaches: leveraging conducive macroeconomic conditions like increased federal allocations; reprioritizing a greater share of the state budget to health; earmarking specific funding sources for health like the State Consolidated Revenue Fund; and attracting external grants. Overall, the analysis estimates that Benue State could generate between $6-12 million in additional annual funding for health through these strategies.
Country Report 2017 Sri Lanka: The Dollar Hungry NationKyna Tsai
Sri Lanka has experienced rapid economic growth following the end of its civil war, but growth has recently slowed. An aging population and declining fertility rates mean Sri Lanka will not benefit from a demographic dividend. High debt and a weak currency are also challenges, though recent reforms aim to develop the capital market and improve the business environment. Religious and ethnic diversity exist despite the Buddhist Sinhalese majority, and tensions remain after the civil war between Sinhalese and Tamil groups.
Equity mutual fund invest in the shares of different companies. The fund manager tries to offer great returns by spreading his investment across companies from different sectors or with varying marketing capitalizations. Typically, equity funds are known to generate better returns. Sake Chaitra | Dr. P. Basaiah "A Study on Selected Equity Mutual Funds" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45175.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45175/a-study-on-selected-equity-mutual-funds/sake-chaitra
The document analyzes the impact of Foreign Institutional Investor (FII) flows on the BSE Sensex and Nifty indices in India over different time periods from 1997-2008. Regression and correlation analyses were conducted between the Sensex/Nifty and FII values. The results showed that for the overall period of 1997-2008, FII had a significant but negligible impact on Sensex. However, from 2003-2008 the impact was not significant. Similarly for just 2008, FII did not significantly impact Sensex.
This document provides an introduction and background on foreign institutional investors (FIIs) and their role in the Indian capital market. Some key points:
1) FIIs provide an important source of foreign capital for India and helped attract $48 billion total until 2003, with $12 billion as FII flows.
2) FIIs differ from foreign direct investment as they involve short-term portfolio investments in financial markets rather than direct production.
3) Understanding the determinants of FII flows is important for emerging economies as FIIs can impact domestic financial markets in the short-run and real economy in long-run.
4) The document outlines the research objectives to examine the role, impact, and
This document provides an executive summary, background on NTPC Ltd and the Indian power sector, objectives of the project report, methodology used, and results.
The objectives were to provide an optimal financial model for NTPC's capital budget and structure to meet 12th Five Year Plan targets, and analyze power policies in India and China to enhance India's capacity.
The methodology included primary and secondary data collection, exploratory and mathematical analysis using tools like capital budgeting and Excel, and recommending policies.
The results showed that India needs improvements in various areas like capacity addition, operations, funding, costs, regulations and distribution to meet targets sustainably while transitioning to alternative energy sources.
The State of Domestic Commerce in Pakistan Study 2 - Effective Protection of ...idspak
Pakistan had adopted a policy of import substitution with objectives of self-sufficiency and protection of domestic infant industries. Manufacturing industries in Pakistan are important contributors to GDP as well as overall employment. Manufacturing sector is a major payer in the external trade; produces 90 percent of exports, including about 10 percent semi-manufactures, and uses about 60 percent of imports. The measures of effective protection computed earlier are no longer relevant and there is an urgent need for computing up-to-date measures of effective protection using the latest cost structure and nominal tariff rates. The present study aims to fulfill this objective.
This document provides an overview of the Credit & Enterprise Development (CED) project for women beekeepers in Northern Pakistan implemented by Hashoo Foundation from 2010-2014. The project aimed to empower women economically by providing training, beehives, and microloans to establish honey bee farming businesses. Over 1,100 women received training and support through this project, generating over 90,000kg of honey and positively impacting over 8,500 family members through increased income spent on education, nutrition, and healthcare. Key lessons learned included the importance of value chain development and collective organization of beekeepers. The project helped establish sustainable honey bee farming and microfinance programs to support economic opportunities for women in remote areas of Northern Pakistan.
Predicting the future accounting earnings empirical evidence from the palesti...Alexander Decker
This document summarizes a research study that aimed to predict future accounting earnings of companies listed on the Palestine Securities Exchange. The study used financial data from 2004 to 2011 for 16 listed companies to examine whether past year earnings and operating cash flows can predict current year earnings. Regression analysis and autoregressive models were employed to test the relationships. The findings showed that past year earnings have a strong ability to predict future earnings, while past year operating cash flows were not useful predictors. Autoregressive models, particularly the AR(2) model, were also found to be useful for predicting firm performance. The study recommends that decision makers in Palestine rely on historical performance data when forecasting future earnings.
This document proposes a process for developing and implementing a national framework to introduce real estate investment trusts (REITs) that could be listed on the Shanghai stock exchange in China. It would involve three stages over 3.5 to 4 years: first an unlisted pilot product, then an interim slightly expanded version, and finally a publicly traded REIT. There are major questions to resolve regarding what a REIT is and what structure it could take in Shanghai. Introducing REITs could potentially stabilize China's real estate and capital markets if shown to do so through econometric tests, making it easier to get government approval. The process would require developing appropriate regulations, laws, and professional standards first before fully opening the markets to RE
Impact of fii is on performance of niftySHUJA SHABBIR
This document is a project report submitted by Shuja Shabbir for a post graduate diploma in portfolio management from Aligarh Muslim University in 2015-2016. The report examines the impact of foreign institutional investments (FIIs) on the performance of the Nifty 50 index of the National Stock Exchange of India. It includes an acknowledgements section, certificate, abstract that outlines the purpose of studying the relationship between FIIs and the Nifty through correlation and regression analysis. It also includes an introduction providing background on the Indian capital markets and FIIs. The remainder of the report is organized into chapters that will cover the Nifty, FIIs, analyzing the relationship between FIIs and the capital market, and data analysis and
The State of Domestic Commerce in Pakistan Study 6 - Wholesale Marketsidspak
This document discusses the structure and organization of wholesale markets for fruits and vegetables in Pakistan. It notes that these markets act as central links between producers and consumers. Wholesale markets are typically privately owned and involve commission agents, wholesalers, and retailers. Commission agents charge fees to use the market and facilitate auctions, wholesalers purchase goods in lots to resell, and retailers sell directly to consumers. Wholesalers generally earn higher profits than commission agents due to assuming greater risk. The document also notes issues like a lack of planning, infrastructure, and provisions to reduce waste in wholesale markets.
Capital Market: Opportunities and ChallengesRezaul Hoq
The present study has exclusively used those methods by compiling the data of very critical and eventful ten years (2001-2011) of DSE, CSE, ICB and other related financial organizations. After collecting data, the researchers edited the data and used some statistical forms according to their suitability and necessity of the study.
Fundamental and technical analysis @ kotak mahindra mba project reportBabasab Patil
This document discusses fundamental and technical analysis for investing in stocks. It provides background on the Indian stock market, including key indices like SENSEX and NIFTY. Fundamental analysis examines real data like financial conditions and management of companies to evaluate stock value, while technical analysis examines past price movements to predict future prices. The document analyzes stocks from BHEL and L&T using both fundamental and technical analysis to predict future prices and make investment recommendations. It also discusses factors that influence stock prices like the economy, industry conditions, and individual company performance.
This document provides an introduction and background on foreign institutional investors (FIIs) and their impact on the Indian capital market. It discusses how FIIs have become an increasingly important source of capital for India since economic liberalization in the 1990s. The document aims to examine the determinants and investment avenues of FIIs in India. It provides context on how FIIs differ from foreign direct investment and their potential macroeconomic effects. Previous research has found equity returns to be a significant determinant of FII flows to India. The introduction sets up an analysis of FII behavior and their relationship with the Indian stock market.
Ownership structure financial structure and r&d investment evidtyokanankiri
This document summarizes a master's thesis written by Chen Yanghua that examines the relationship between ownership structure, financial structure, and research and development (R&D) investments using data from Korean firms. The thesis was submitted to the Lee Kong Chian School of Business at Singapore Management University in partial fulfillment of the requirements for a Master of Science in Management degree. The thesis was supervised by Professor Young Rok Choi and analyzes how different types of ownership (controlling owners and institutional investors) and financial factors (financial slack and leverage ratio) impact a firm's R&D investments.
Gilded Gatekeepers: Myanmar’s State-Owned Oil, Gas and Mining EnterprisesMYO AUNG Myanmar
Gilded Gatekeepers: Myanmar’s State-Owned Oil, Gas and Mining Enterprises
Patrick R.P. Heller and Lorenzo Delesgues
http://www.resourcegovernance.org/sites/default/files/nrgi_Myanmar-State-Owned-Enterprises_Full-Report.pdf
Weak transparency
There has been a distinct lack of public transparency in the management of these SEEs.
Of the 45 state-owned enterprises assessed in NRGI’s worldwide 2013 Resource
Governance Index, only one (Turkmenistan’s Turkmengas) was found to disclose less
information to the public than MOGE. The mining-sector SEEs have been even less
transparent than MOGE in many ways. Shortcomings include a lack of public disclosure
of information on SEEs’ revenues, financial interests, activities and leadership structure
Military involvement
Finally, many interviewees indicated that military-affiliated companies occupy a central
position in the mining industry in particular, though their precise roles and activities
remain unclear. Companies such as the Myanmar Economic Corporation (MEC)
and Union of Myanmar Economic Holdings Limited (UMEHL) are not state-owned
enterprises. They are private companies which many believe are largely owned and
managed by military officers and other public officials. However, many stakeholders
in Myanmar indicated that these companies play important quasi-official roles in
determining who gets access to mining projects and in distributing the benefits of
extraction, overlapping the authority of SEEs in confusing ways and impeding public
accountability.
Estimated value of Myanmar jade trade:
Official estimates: $1 billion.
UN Comtrade report: nearly $12 billion.
Global Witness: as high as $31 billion.
From April 2013 – March 2014, MOGE deposited more into its
“Other Accounts” ($1.4 billion) than Myanmar spent on health ($750 million) or education ($1.1 billion) in FY 2013/14.
Final study report for publication december 17, 2009Regmi Milan
This document summarizes a study on Nepal's microfinance policy and regulatory framework. The study aimed to review existing frameworks, identify stakeholder issues, and suggest measures to enhance sustainability and growth. Key findings include: 1) microfinance has expanded but penetration remains low, 2) regulations exist but reforms are needed, 3) a national seminar provided feedback before finalizing recommendations. The study resulted in the model Microfinance Act of 2009 to establish a level playing field and support sector growth.
The document provides background information on benchmarking National Bank of Fujairah against its peers in the UAE banking industry. It discusses the UAE economy and banking sector, highlighting factors such as strong GDP growth, population growth, and the importance of Islamic banking. It also notes NBF's plans to expand retail operations and restructure, creating a need to benchmark performance. The study will analyze financial ratios, compare disclosures, and conduct a Data Envelopment Analysis to measure efficiency and benchmark NBF against local banks.
Thesis(project work): portfolio construction using top down approach in indi...Mohammadali Surti
Thesis Project Work on Portfolio Management in Indian Stock Market. It talks about the quantitative aspects considered during the selection of company in portfolio.
Market Timing and Capital Structure Evidence from Hong Kong Listed CompaniesFaye Wang
This dissertation examines the market timing theory of capital structure using IPO data from 227 Hong Kong listed companies from 2005 to 2015. The author tests three hypotheses: 1) Whether market timing behavior exists in financing decisions of Hong Kong companies; 2) Whether there are short-term effects of market timing on capital structure; 3) Whether there are persistent long-term effects of market timing lasting 10 years. Linear regression is used to analyze the data. The results support all three hypotheses and provide evidence that market timing theory applies to Hong Kong listed companies, consistent with studies of developed markets.
ANALYZING FISCAL SPACE FOR HEALTH IN BENUE STATE, NIGERIAHFG Project
The document analyzes potential fiscal space for health in Benue State, Nigeria. It finds that Benue State could expand fiscal space for health through several approaches: leveraging conducive macroeconomic conditions like increased federal allocations; reprioritizing a greater share of the state budget to health; earmarking specific funding sources for health like the State Consolidated Revenue Fund; and attracting external grants. Overall, the analysis estimates that Benue State could generate between $6-12 million in additional annual funding for health through these strategies.
Country Report 2017 Sri Lanka: The Dollar Hungry NationKyna Tsai
Sri Lanka has experienced rapid economic growth following the end of its civil war, but growth has recently slowed. An aging population and declining fertility rates mean Sri Lanka will not benefit from a demographic dividend. High debt and a weak currency are also challenges, though recent reforms aim to develop the capital market and improve the business environment. Religious and ethnic diversity exist despite the Buddhist Sinhalese majority, and tensions remain after the civil war between Sinhalese and Tamil groups.
Equity mutual fund invest in the shares of different companies. The fund manager tries to offer great returns by spreading his investment across companies from different sectors or with varying marketing capitalizations. Typically, equity funds are known to generate better returns. Sake Chaitra | Dr. P. Basaiah "A Study on Selected Equity Mutual Funds" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45175.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45175/a-study-on-selected-equity-mutual-funds/sake-chaitra
The document analyzes the impact of Foreign Institutional Investor (FII) flows on the BSE Sensex and Nifty indices in India over different time periods from 1997-2008. Regression and correlation analyses were conducted between the Sensex/Nifty and FII values. The results showed that for the overall period of 1997-2008, FII had a significant but negligible impact on Sensex. However, from 2003-2008 the impact was not significant. Similarly for just 2008, FII did not significantly impact Sensex.
This document provides an introduction and background on foreign institutional investors (FIIs) and their role in the Indian capital market. Some key points:
1) FIIs provide an important source of foreign capital for India and helped attract $48 billion total until 2003, with $12 billion as FII flows.
2) FIIs differ from foreign direct investment as they involve short-term portfolio investments in financial markets rather than direct production.
3) Understanding the determinants of FII flows is important for emerging economies as FIIs can impact domestic financial markets in the short-run and real economy in long-run.
4) The document outlines the research objectives to examine the role, impact, and
This document provides an executive summary, background on NTPC Ltd and the Indian power sector, objectives of the project report, methodology used, and results.
The objectives were to provide an optimal financial model for NTPC's capital budget and structure to meet 12th Five Year Plan targets, and analyze power policies in India and China to enhance India's capacity.
The methodology included primary and secondary data collection, exploratory and mathematical analysis using tools like capital budgeting and Excel, and recommending policies.
The results showed that India needs improvements in various areas like capacity addition, operations, funding, costs, regulations and distribution to meet targets sustainably while transitioning to alternative energy sources.
The State of Domestic Commerce in Pakistan Study 2 - Effective Protection of ...idspak
Pakistan had adopted a policy of import substitution with objectives of self-sufficiency and protection of domestic infant industries. Manufacturing industries in Pakistan are important contributors to GDP as well as overall employment. Manufacturing sector is a major payer in the external trade; produces 90 percent of exports, including about 10 percent semi-manufactures, and uses about 60 percent of imports. The measures of effective protection computed earlier are no longer relevant and there is an urgent need for computing up-to-date measures of effective protection using the latest cost structure and nominal tariff rates. The present study aims to fulfill this objective.
This document provides an overview of the Credit & Enterprise Development (CED) project for women beekeepers in Northern Pakistan implemented by Hashoo Foundation from 2010-2014. The project aimed to empower women economically by providing training, beehives, and microloans to establish honey bee farming businesses. Over 1,100 women received training and support through this project, generating over 90,000kg of honey and positively impacting over 8,500 family members through increased income spent on education, nutrition, and healthcare. Key lessons learned included the importance of value chain development and collective organization of beekeepers. The project helped establish sustainable honey bee farming and microfinance programs to support economic opportunities for women in remote areas of Northern Pakistan.
Predicting the future accounting earnings empirical evidence from the palesti...Alexander Decker
This document summarizes a research study that aimed to predict future accounting earnings of companies listed on the Palestine Securities Exchange. The study used financial data from 2004 to 2011 for 16 listed companies to examine whether past year earnings and operating cash flows can predict current year earnings. Regression analysis and autoregressive models were employed to test the relationships. The findings showed that past year earnings have a strong ability to predict future earnings, while past year operating cash flows were not useful predictors. Autoregressive models, particularly the AR(2) model, were also found to be useful for predicting firm performance. The study recommends that decision makers in Palestine rely on historical performance data when forecasting future earnings.
This document proposes a process for developing and implementing a national framework to introduce real estate investment trusts (REITs) that could be listed on the Shanghai stock exchange in China. It would involve three stages over 3.5 to 4 years: first an unlisted pilot product, then an interim slightly expanded version, and finally a publicly traded REIT. There are major questions to resolve regarding what a REIT is and what structure it could take in Shanghai. Introducing REITs could potentially stabilize China's real estate and capital markets if shown to do so through econometric tests, making it easier to get government approval. The process would require developing appropriate regulations, laws, and professional standards first before fully opening the markets to RE
Impact of fii is on performance of niftySHUJA SHABBIR
This document is a project report submitted by Shuja Shabbir for a post graduate diploma in portfolio management from Aligarh Muslim University in 2015-2016. The report examines the impact of foreign institutional investments (FIIs) on the performance of the Nifty 50 index of the National Stock Exchange of India. It includes an acknowledgements section, certificate, abstract that outlines the purpose of studying the relationship between FIIs and the Nifty through correlation and regression analysis. It also includes an introduction providing background on the Indian capital markets and FIIs. The remainder of the report is organized into chapters that will cover the Nifty, FIIs, analyzing the relationship between FIIs and the capital market, and data analysis and
The State of Domestic Commerce in Pakistan Study 6 - Wholesale Marketsidspak
This document discusses the structure and organization of wholesale markets for fruits and vegetables in Pakistan. It notes that these markets act as central links between producers and consumers. Wholesale markets are typically privately owned and involve commission agents, wholesalers, and retailers. Commission agents charge fees to use the market and facilitate auctions, wholesalers purchase goods in lots to resell, and retailers sell directly to consumers. Wholesalers generally earn higher profits than commission agents due to assuming greater risk. The document also notes issues like a lack of planning, infrastructure, and provisions to reduce waste in wholesale markets.
Capital Market: Opportunities and ChallengesRezaul Hoq
The present study has exclusively used those methods by compiling the data of very critical and eventful ten years (2001-2011) of DSE, CSE, ICB and other related financial organizations. After collecting data, the researchers edited the data and used some statistical forms according to their suitability and necessity of the study.
Fundamental and technical analysis @ kotak mahindra mba project reportBabasab Patil
This document discusses fundamental and technical analysis for investing in stocks. It provides background on the Indian stock market, including key indices like SENSEX and NIFTY. Fundamental analysis examines real data like financial conditions and management of companies to evaluate stock value, while technical analysis examines past price movements to predict future prices. The document analyzes stocks from BHEL and L&T using both fundamental and technical analysis to predict future prices and make investment recommendations. It also discusses factors that influence stock prices like the economy, industry conditions, and individual company performance.
This document provides an introduction and background on foreign institutional investors (FIIs) and their impact on the Indian capital market. It discusses how FIIs have become an increasingly important source of capital for India since economic liberalization in the 1990s. The document aims to examine the determinants and investment avenues of FIIs in India. It provides context on how FIIs differ from foreign direct investment and their potential macroeconomic effects. Previous research has found equity returns to be a significant determinant of FII flows to India. The introduction sets up an analysis of FII behavior and their relationship with the Indian stock market.
Ownership structure financial structure and r&d investment evidtyokanankiri
This document summarizes a master's thesis written by Chen Yanghua that examines the relationship between ownership structure, financial structure, and research and development (R&D) investments using data from Korean firms. The thesis was submitted to the Lee Kong Chian School of Business at Singapore Management University in partial fulfillment of the requirements for a Master of Science in Management degree. The thesis was supervised by Professor Young Rok Choi and analyzes how different types of ownership (controlling owners and institutional investors) and financial factors (financial slack and leverage ratio) impact a firm's R&D investments.
Gilded Gatekeepers: Myanmar’s State-Owned Oil, Gas and Mining EnterprisesMYO AUNG Myanmar
Gilded Gatekeepers: Myanmar’s State-Owned Oil, Gas and Mining Enterprises
Patrick R.P. Heller and Lorenzo Delesgues
http://www.resourcegovernance.org/sites/default/files/nrgi_Myanmar-State-Owned-Enterprises_Full-Report.pdf
Weak transparency
There has been a distinct lack of public transparency in the management of these SEEs.
Of the 45 state-owned enterprises assessed in NRGI’s worldwide 2013 Resource
Governance Index, only one (Turkmenistan’s Turkmengas) was found to disclose less
information to the public than MOGE. The mining-sector SEEs have been even less
transparent than MOGE in many ways. Shortcomings include a lack of public disclosure
of information on SEEs’ revenues, financial interests, activities and leadership structure
Military involvement
Finally, many interviewees indicated that military-affiliated companies occupy a central
position in the mining industry in particular, though their precise roles and activities
remain unclear. Companies such as the Myanmar Economic Corporation (MEC)
and Union of Myanmar Economic Holdings Limited (UMEHL) are not state-owned
enterprises. They are private companies which many believe are largely owned and
managed by military officers and other public officials. However, many stakeholders
in Myanmar indicated that these companies play important quasi-official roles in
determining who gets access to mining projects and in distributing the benefits of
extraction, overlapping the authority of SEEs in confusing ways and impeding public
accountability.
Estimated value of Myanmar jade trade:
Official estimates: $1 billion.
UN Comtrade report: nearly $12 billion.
Global Witness: as high as $31 billion.
From April 2013 – March 2014, MOGE deposited more into its
“Other Accounts” ($1.4 billion) than Myanmar spent on health ($750 million) or education ($1.1 billion) in FY 2013/14.
Final study report for publication december 17, 2009Regmi Milan
This document summarizes a study on Nepal's microfinance policy and regulatory framework. The study aimed to review existing frameworks, identify stakeholder issues, and suggest measures to enhance sustainability and growth. Key findings include: 1) microfinance has expanded but penetration remains low, 2) regulations exist but reforms are needed, 3) a national seminar provided feedback before finalizing recommendations. The study resulted in the model Microfinance Act of 2009 to establish a level playing field and support sector growth.
The document provides background information on benchmarking National Bank of Fujairah against its peers in the UAE banking industry. It discusses the UAE economy and banking sector, highlighting factors such as strong GDP growth, population growth, and the importance of Islamic banking. It also notes NBF's plans to expand retail operations and restructure, creating a need to benchmark performance. The study will analyze financial ratios, compare disclosures, and conduct a Data Envelopment Analysis to measure efficiency and benchmark NBF against local banks.
This document is a study on financial derivatives (futures and options) submitted for a Master of Business Administration degree. It discusses the emergence of derivatives markets as a way for economic agents to hedge against price fluctuations in underlying assets. Derivatives derive their value from an underlying asset like stocks, indexes, bonds, currencies, or interest rates. The study aims to analyze futures and options transactions, examine profit/loss for buyers/sellers and writers/holders, and evaluate risk management with derivatives. It focuses on the Indian context using data from the National Stock Exchange of India.
Finance project report on a study on financial derivatives ...Mba projects free
This document is a study on financial derivatives (futures and options) submitted for a Master's degree in Business Administration. It discusses the emergence and growth of derivatives markets as a way for economic agents to hedge against price risks. Derivatives derive their value from an underlying asset and are used by banks, firms, and investors for hedging, speculation, and arbitrage. The main types of derivatives are futures, options, warrants, LEAPS, baskets, and swaps. The study analyzes derivatives trading in India and examines how it impacts market volatility.
This report analyzes recent economic and financial issues in Bangladesh based on news from the Financial Express newspaper over two months. It discusses 16 issues impacting the business environment and analyzes four issues in depth: 1) global brands outsourcing footwear production to Bangladesh, 2) herd behavior in the capital market, 3) highest foreign direct investment inflows last year, and 4) benefits and challenges of e-banking. The report finds opportunities for Bangladesh from outsourcing and FDI but also risks from herd behavior in the market and challenges in developing e-banking. Recommendations are provided to maximize opportunities and overcome obstacles to improve the overall economy.
Analysis of Financial Market Securities in Bangladesh: Current Status, Chal...Jahid Khan Rahat
This report presents an analysis of the financial market securities in Bangladesh, focusing on
the current status, challenges, and prospects for future growth. The study was conducted
through a comprehensive review of secondary sources, including published reports, academic
studies, and industry publications.
The report highlights that the Bangladeshi financial market has experienced significant growth
in recent years, driven by a stable macroeconomic environment and supportive government policies. The market has seen an influx of new investors and increased participation from
institutional investors, leading to increased liquidity and trading volumes. However, the report also identifies several challenges that could potentially limit the growth of the financial market. These include a lack of regulatory oversight, limited product diversity, and low levels of financial literacy among the general public. Despite these challenges, the report also identifies several prospects for future growth in the financial market, including the potential for increased foreign investment, the development of new financial products, and the expansion of digital platforms.
Overall, the report concludes that the Bangladeshi financial market is well-positioned for future
growth but requires careful attention to address the challenges it faces. Policymakers,
regulators, and market participants all have a role to play in ensuring the sustainability and
development of the financial market in Bangladesh.
Attracting Foreign Direct Investment In PakistanAyaz Bhatti
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WTO plays a vital role by bringing stability and predictability to the multilateral trading system. It is a collective responsibility of WTO members to address the challenges faced by the system and putting the economies back on steady and meaningful way forward.
Several proposals and initiatives on investment facilitation were tabled at the WTO in the run-up to the 11th Ministerial Conference. The proponents advocated discussions on Investment Facilitation within the WTO framework. However, there was no consensus on initiating negotiations, or even establishing a Work Programme, on Investment Facilitation. A clear need of more work to look at all aspects of a potential multilateral rules on Investment, particularly on its impact on domestic policy space was stated.
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The Economic Freedom of the States of India 2012 estimates economic freedom in the 20 biggest Indian states, based on data for 2011. The aim of this report—to measure the level of economic freedom within India—grows out of a larger project begun in the 1980s by the Fraser Institute and culminating in the annual Economic Freedom of the World
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This document provides an overview of the global and Indian footwear industry. It discusses the history of footwear dating back to ancient civilizations. India has a large livestock population and is one of the largest producers and exporters of footwear globally, especially leather footwear. The key products exported are leather footwear, footwear components, leather garments, and leather goods. The footwear industry is concentrated in certain regions and states of India like Tamil Nadu, Delhi, Agra and Kanpur. The document also provides statistics on India's annual footwear production capacity and imports.
The document provides an introduction and overview of mutual funds in India. It discusses that a mutual fund is an investment tool that allows investors to pool their money together under one scheme. The collected money is then invested in capital markets by professional fund managers. The document then provides details about the structure and contents of the summer training report, which focuses on analyzing mutual funds in India. It includes chapters on the introduction to mutual funds and the industry, literature review, research methodology, data analysis, findings and conclusion. The executive summary provides a brief overview of the key topics that will be discussed in the report such as the history of mutual funds in India, types of mutual funds, costs and fees, and trends in the industry.
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CAPAC Recommendations for India
1. CAPAC Recommendations Economics and Social Sciences
Title: Recommendations on capital control policies for India
Advisor: Dr Vivek Moorthy
Name: Kaushik Rana
Email: kaushikr05@iimb.ernet.in
Roll No: 2005128
Post Graduate in Software Enterprise Management
INDIAN INSTITUTE OF MANAGEMENT BANGALORE,
Bannerghatta Road, Bangalore, India.
IIMB-PGSEM Page 1 of 51
3. CAPAC Recommendations Economics and Social Sciences
With Best Regards,
Table of Contents
Declaration:..........................................................................................................................2
Table of Contents.................................................................................................................3
Introduction:.........................................................................................................................4
Review of the FCAC:...........................................................................................................5
Allowing outflows for foreign real estate investment:........................................................7
CAPAC for Resident Individuals in East Asian Economies: .............................................9
Thailand:..........................................................................................................................9
Malaysia: .......................................................................................................................10
South Korea: .................................................................................................................11
Philippines:....................................................................................................................13
Taiwan:..........................................................................................................................14
Real estate investment in Developed Countries:...............................................................16
United States of America: .............................................................................................17
Canada:..........................................................................................................................19
United Kingdom:...........................................................................................................21
Conclusion:........................................................................................................................23
Appendices:........................................................................................................................25
Appendix 1: Circular issued by Bank of Thailand on 24th July, 2007......................25
Appendix 2: Circular issued by Central Bank of Malaysia (1-Apr-2007).................27
Appendix 3: Summary of Credit Facilities allowed in Malaysia ..............................29
Appendix 4: Forex Liberalization Plan in South Korea (19 May 2006) ...................31
Appendix 5: Foreign Exchange Regulations in Philippines (Mar-2007)...................32
Appendix 6: Excerpts from Foreign Exchange Control Act in Taiwan.....................34
Exhibits:.............................................................................................................................37
Exhibit 1: Key Economic Indicators in Thailand......................................................37
Exhibit 2: Key Economic Indicators in Malaysia......................................................38
Exhibit 3: Key Economic Indicators in South Korea.................................................40
Exhibit 4: Key Economic Indicators in Philippines...................................................42
Exhibit 5: Key Economic Indicators in Taiwan.........................................................44
Exhibit 6: Key Economic Indicators in India............................................................46
References:.........................................................................................................................48
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4. CAPAC Recommendations Economics and Social Sciences
Introduction:
Capital Account Convertibility (CAPAC) refers to the freedom to convert local financial
assets into foreign financial assets and vice versa. It is associated with changes of
ownership in foreign/domestic financial assets and liabilities and embodies the creation
and liquidation of claims on, or by, the rest of the world. CAPAC can be, and is,
coexistent with restrictions other than on external payments. (Tarapore et al. 2006, 5)
While the benefits of CAPAC are quite obvious like greater capital mobility allows
foreign fund inflows easier into the country increasing the availability of large capital
stock for long term investments. CAPAC allows residents to hold internationally
diversified portfolios thereby reducing the vulnerability of income streams to shocks in
the domestic market. Capital account liberalization also provides effective financial
intermediation allowing the domestic and foreign players more choice of financial
products, and raises the bar to international levels. In short move towards CAPAC is
regarded as a mark of a developing country graduating into a developed country.
In 1997, the RBI appointed a Committee on Capital Account Convertibility headed by Mr
S. S. Tarapore, the then Deputy Governor of RBI, to examine the issue in all its
ramifications and provide a road map for the economy to move towards full
convertibility. The Tarapore Committee recommended that the capital account
convertibility be done in a phase manner from 1997 to 2000 and only after certain
preconditions were satisfied. However, nothing much happened during the recommended
phase (1997-2000) mostly because of political pressures that did not allow Government
to take many drastic steps and the onset of financial crisis in Southeast Asia barely two
months after the report was published. But, after 2000, there was a phenomenal increase
in the foreign exchange reserves (there was a quantum jump of $21.3 billion in 2002/03
alone). This embarrassingly high level of reserves forced the policy makers to
compulsorily liberalize both the current and capital account exchange control regime.
Again at the behest of our PM Manmohan Singh on 18 th March, 2006 to come up with a
transparent framework to move towards fuller capital account convertibility, the RBI
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5. CAPAC Recommendations Economics and Social Sciences
constituted the Fuller Capital Account Convertibility (FCAC) committee in March 20,
2006.
For the purpose of this paper we shall be primarily reviewing the FCAC report in light of
the recent developments in India. We shall also be referring to the Economic Advisory
Council (EAC) recommendations for this year and recommendations of others over the
years on the path to be taken for CAPAC liberalization. A comparison of India's policies
with respect other East Asian Countries like Thailand, Malaysia, South Korea,
Philippines and Taiwan will hopefully support our arguments for India. As we may note,
the FCAC report which is built upon the 1997 Tarapore Committee report has different
policy regulations for various entities which are as segmented below:
● Corporate/Business Residents
● Corporates – Non Residents (including OCBs)
● Banks – Residents
● Banks – Non Residents
● Non-banks – Financial Residents
● Non-banks Non-residents – FIIs
● Individuals – Residents
● Individuals – Non-Residents
For the purpose of this paper we will consider the capital control measures primarily on
Resident Indian Individuals (RII) who we think has been successively left out (Moorthy
1997, Part 1).
Review of the FCAC:
The FCAC report had acknowledged the fact while there has been reasonable amount of
convertibility for non-resident corporate and NRI, there is near-zero convertibility for
IIMB-PGSEM Page 5 of 51
6. CAPAC Recommendations Economics and Social Sciences
non-resident individuals (Tarapore et al. 2006, 10). Again, resident individuals face a
virtual ban on capital outflow (Tarapore et al. 2006, 11). While the very definition of
CAPAC calls for freedom of converting local assets into foreign and vice-versa, the RBI
seems to have taken a step-motherly approach towards capital control measures for
resident Indians for fears of waves of outflows that requires to be calibrated (Tarapore et
al. 2006, 11). While the 1997 committee Report called for implementing a plan to allow
RIIs to remit upto USD 100,000 per annum by 2000, it was only in this fiscal (2007-08
to 2008-09) that this got implemented (Tarapore et al. 2006, 109). Ironically, RBI was
forced to hike the limit to USD 200,000 through Circular No. 9 dated 26-Sep-2007 to
ease the pressure on the rupee on account of the strong FII inflows. As per the FCAC
report, this hike would have come into effect only in the 2009-10 to 2010-11 time-frames.
Hence, one may be forced to raise the question of delay of the 1997 recommendations
and this ad hoc measure in 2007. To this point, we are in agreement to Mr S.S. Bhalla's
(Committee Member of FCAC report) dissent note stating that FCAC report has failed to
deliver the benefits of CAPAC to resident Indians and that he is being allowed to remit
about 30% less in real terms than he was recommended in 1999/00 (Tarapore et al. 2006,
151).
FCAC has argued that remittance from resident individuals is but a trickle – US$ 28.3
million for portfolio investments and additional US$ 1.9 million for immovable property
in 2004 and 2005 (Tarapore et al. 2006, 19). While one may not be very sure whether its
an issue with data collection or procedural impediments, the report mentions that RBI has
liberalized CAPAC on an ad hoc basis and the basic framework of control system has
remain unchanged (Tarapore et al. 2006, 20). Mr A.V. Rajwade (Committee member of
FCAC report) is however against liberalizing capital account for individuals for fear of
large capital outflows from resident individuals through herd mentality that happened
during the Asian crisis (Tarapore et al. 2006, 148). Consider this, since March 2007, the
increase in foreign currency assets in India is USD 62.7 billion (an increase of 32%)
while it has increased by about 58.79.84% since October 2006 while the rupee has
appreciated by about 15.075% against the dollar in the last one year (See Exhibit 6).
Hence, most of the above currency asset is because of RBI's intervention in the foreign
IIMB-PGSEM Page 6 of 51
7. CAPAC Recommendations Economics and Social Sciences
exchange market to prevent the rupee from appreciating quickly. As Dr Vivek Moorthy
had argued in response to the 1997 report that the goal of RBI is to get the rupee to
gradually fall in line with India's higher inflation, so that the competitiveness of the
external sector is not adversely affected (Moorthy 1997, Part-3). He recommends that
allowing RIIs to hold some foreign currency assets is likely to facilitate this goal as the
ongoing demand by Indians to invest overseas is likely to continue to put downward
pressure on the absolute value of the rupee. Hence, we respectfully disagree with Mr.
Rajwade's views.
The Economic Outlook report 2007-08 chaired by Dr C. Rangarajan mentions that
accumulation of foreign currency assets with the RBI has the direct monetary
consequence of increasing the stock of reserve money which in turn may fuel inflation in
the economy. Further, it mentions that the order of magnitude of capital inflows can have
serious repercussions for domestic businesses in both the domestic and export markets
(Rangarajan et al. 2007, 58). So, the report suggests various channels for 'orderly
conditions' through RBI intervention – one by neutralizing through issue of MSBs,
increasing the CRR and by limiting the conversion of ECB proceeds into rupees
(Rangarajan et al. 2007, 59). As restrictions on capital inflows may be seen as a
regressive step, the report suggests liberalizing outflows by removing administrative and
procedural impediments. However, it does not specify how or anything specifically
related to RII. This is where we think there is a gap and an opportunity for RBI to bridge.
Allowing outflows for foreign real estate investment:
We also think that the FCAC report has probably missed the point regarding short term
outflows versus long term outflows. While outflow controls are used to limit the
downward pressure on their currencies. Such controls should mainly be applied to short-
term capital transactions to counter speculative outflows that threaten to undermine the
stability of the exchange rate and deplete foreign exchange reserves. But the same cannot
be said for long term outflows like investment in real estate in a foreign country by RIIs.
A foreign investment in real estate by a RII can be a good way to help one diversify one's
IIMB-PGSEM Page 7 of 51
8. CAPAC Recommendations Economics and Social Sciences
portfolio, help one make a provision of better living conditions in developed countries
and also most importantly make a progressive move towards fuller CAPAC. However, as
Dr Vivek Moorthy rightly points out that such a scheme should not be allowed to be used
to convert black money into white (Moorthy 1997, Part 3). Guidelines can be given to
allow buy of foreign assets only by selling of well-documented financial assets and
ensuring record through PAN and annual tax returns. We would hence focus our analysis
on the possibility of allowing real estate investments abroad referring to countries like
Thailand, Malaysia, South Korea, Philippines and Taiwan. We would also consider some
other measures being taken by the Central Banks in these economies to enable fuller
capital account convertibility for residents and ease the pressure of an appreciating
currency. We would also touch upon some other measures taken by the Central banks in
these economies for Resident individuals.
Interestingly, the FCAC report has recommended remittance up to US$ 1 million, per
calendar year, for NRIs out of balances held in NRO accounts or sale proceeds of assets
in India acquired by way of inheritance or sale proceeds of house bought 10 years ago
(Tarapore et al. 2006, 108). However, the same law does not apply for resident
individuals. Today, in spite of the increase of allowed capital outflow to US$ 200,000 per
calendar year for resident individual, it is not much to acquire an immovable property in a
foreign land. While the RBI has been continuously taking different measures to ease the
pressure on rupee through controls in the ECB route, allowing increased portfolio
investments abroad by corporate, exchange earner's foreign currency account
liberalization, market stabilization schemes, it is yet to consider allowing individual
residents to invest in real estate abroad. While short term capital outflow can lead to
exchange rate volatility, allowing RIIs to invest in long term foreign assets like real estate
can surely be beneficial.
According to Dr Moorthy (1997, Part-3), there is opportunity cost of keeping huge
reserves of dollars idle or in low yielding assets. Cultural affinity of Indians makes then
invest in gold which is in general a poor investment with no cash dividends. Instead they
can invest in high yielding foreign assets to enhance their returns and have better quality
IIMB-PGSEM Page 8 of 51
9. CAPAC Recommendations Economics and Social Sciences
of life.
CAPAC for Resident Individuals in East Asian
Economies:
Thailand:
Consider the case of Thailand – the economy has grown at around 4.4% in the last one
year while inflation has been falling steadily and stood at 1.9% in May'07 (See Exhibit
1). On the other hand, international reserves increased by 32.5% to USD 80.2 billion
(Oct'07) since Oct'06 while the baht appreciated by 6.43% in the same period (See
Exhibit 1). However, to prevent this rapid appreciation of the baht hurting the exporters,
the Central bank introduced some capital controls on Dec 18, 2006 which read as
follows:
“Anyone selling more than $20,000-worth of foreign currency, other than for the
purposes of trade, would have had to deposit 30% of it with the central bank—at zero
interest—for one year, or forfeit one-third of the deposit.” (Bizasia.com 2007)
On December 19, 2006, Thailand’s stock market plunged 15%, a degree greater than
anything experienced during the 1997 Asian Financial Crisis in response to the above
regulation!! (WSJ.com 2007)
Thus, recently on 24th July, 2007 the Ministry of Finance issued notification allowing
relaxation of Exchange Control Regulations to benefit Thai business and individuals in
their investments abroad (see Appendix 1). For a Thai resident the limit to which he may
remit abroad has been raised to USD 1 million or its equivalent per person per year. This
remittance can be for a family or relative who is a permanent resident abroad, remittance
for donation to public, remittance to purchase immovable properties abroad and
remittance to purchase securities of an affiliated business abroad according to an
IIMB-PGSEM Page 9 of 51
10. CAPAC Recommendations Economics and Social Sciences
employee's benefits plan. The remittance limit is same for inheritance to a person who is
a Thai emigrant resident abroad. One may argue that Thailand has a fairly comprehensive
liberalized capital account as permanent Thai residents can buy, exchange or borrow
foreign currencies from authorized person and deposit that with obligation up to USD
500,000 or its equivalent for a natural person and USD 50 million or its equivalent for a
juristic person.
Compare this with India where foreign reserves have increased by 58% and rupee
appreciated by about 15% compared to 32% and 6.5 for Thailand. So, while India has
similar policy with Thailand related to remittance for non-resident individuals, the
policies differ grossly when it comes to resident individuals. Hence, to prevent any
further misbalance to economy, RBI may do good to relax the capital controls for RIIs as
Thailand has done.
Malaysia:
Another East Asian economy is Malaysia which has achieved remarkable growth with
the GDP above 4% in the last 5 years and grew by 5.5% in the last 6 months of this year
(See Exhibit 2). This growth has been achieved amidst low inflation - Headline inflation,
as measured by the annual change in the Consumer Price Index (CPI), increased to 1.9%
in August 2007 (See Exhibit 2). The ringgit appreciated against the dollar by 3.3%
between Dec'06 to Sep'07 while net international reserves stood at USD 97 billion
(approximately 21.25% increase since Dec'06).
The Central Bank of Malaysia (Bank Negara Malaysia) in the circular dated 1st April,
2007 overhauled the investment abroad policies in Malaysia (See Appendix 2).
Accordingly, a resident Malay individual with domestic ringgit credit facilities is allowed
to convert ringgit into foreign currency up to RM 1 million (equivalent to approximately
USD 30,000) per calendar year for investment in foreign currency assets while there is no
restriction on the amount for a resident without domestic ringgit credit facilities. While
this amount may be small and also they have not specified if FCA can include real estate,
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11. CAPAC Recommendations Economics and Social Sciences
they have made separate provisions for resident individuals to invest in offshore and
onshore foreign currency assets. Resident Malays wishing to invest more than RM 50
million (apprx USD 1.5 million) per year in offshore foreign currency accounts without
domestic ringgit facility may need to register (See Appendix 2) while no registration is
required for placement in onshore FCA or foreign currency financial products marketed
by licensed onshore banks or any residents permitted by the Controller. This is again a
step forward in liberalizing current account convertibility and helps the central bank
manage capital flows.
In the same circular (1st April, 2007), the Central Bank has made extensive provisions for
providing credit facilities for non-residents. So, a resident corporation without domestic
ringgit credit facility is allowed to convert any amount of ringgit into foreign currency for
the lending to non-residents but for resident corporations with domestic credit facilities
the amount can not exceed RM 50 million equivalents per calendar year. This facility is
even extended to Resident Malay Individuals (See Exhibit 3). Accordingly, resident
individuals can grant foreign credit facility of any amount funded by own foreign
currency funds placed onshore and offshore or through conversion of ringgit (without any
domestic credit facilities).
These are surely innovative ways of allowing capital outflow which RBI may consider
for India to ease the pressure of an appreciating rupee without having to resort to
increasing foreign currency reserves.
South Korea:
South Korea which has transformed itself into a modern industrialized nation and also a
member of OECD is again a very interesting point in case. The Korean economy has
grown above 5% in 2006 (see Exhibit 3) and currently clocking a growth above 4%
(2007) has been able to keep inflation low between 2.5% to 3.5% since mid-2005. The
exchange rate has risen 9% relative to the dollar since the end of 2005 (and 4.19% in the
last 1 year reaching its lowest of 909.9 to dollar on 26th October, 2007) and foreign
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12. CAPAC Recommendations Economics and Social Sciences
reserves of USD 247 billion (47% of GDP in 2007) driven by foreign exchange market
intervention intended to smooth the upward trend in won.
Korea is one country which has very systematically undertaken capital account
liberalization since 1997. After the currency crisis broke out in November 21, 1997,
Korea shifted to free-floating exchange rate system in December (BoK.kr 2007). By
January, 2001 it completely removed ceiling on overseas travel expenses, emigration
expenses, and withdrawals of domestic assets by nonresident nationals and deposits and
trusts abroad (BoK.kr 2007). In June 2005, the government announced the Overseas
Investment Activation Plan in which limits on real estate acquisition abroad and overseas
direct investment by individuals were expanded (BoK.kr 2007). The limits on real estate
acquisition abroad by residents, on overseas direct investment by individuals, on the
overall net open positions of foreign exchange banks and on the obligation for
repatriation of overseas claims were further expanded in 2006 (BoK.kr 2007). Currently
Bank of Korea allows purchase of real estate for business and investment activities of
corporation’s purchase of real estate of up to US$ 0.3 million for residence abroad by
residents intending to sojourn abroad for more than two years, purchases to establish
schools, hospitals or religious institutions, etc (BoK.kr 2007).
The credit policy in Korea is also highly developed. Accordingly, Foreign Exchange
Bank, general trading companies, institutional investors can provide foreign currency or
domestic currency loans to non-residents. Corporations can grant up to USD 10 million to
non-residents or up to 1 billion won per non-resident borrower upon declaration to the
Bank of Korea (BoKLoan.kr 2007). With regard to the credit facilities to non-residents
both South Korea and Malaysia is much in advance which allows for some capital
outflows from the economy reducing some pressure on the Central Banks.
Again Korea allows for residents to hold deposits abroad for asset diversification
purposes without any quantitative ceiling (BoKDeposit.kr 2007). Residents except
institutional investors who intend to deposit abroad by remitting more than US$ 50,000
per case from Korea must declare this to the Bank of Korea (BoKDeposit.kr 2007).
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13. CAPAC Recommendations Economics and Social Sciences
As of May 19, 2006, the Korean government announced its decision to advance the
implementation schedule of the on-going foreign exchange liberalization from the initial
time line of previous 2011 to 2009 in a phase wise manner (Appendix 4). Accordingly,
Koreans will be allowed to acquire overseas real estate for investment purpose up to USD
1 million or less (the limit to be raised in a step by step manner). Meantime, Korean
residents’ acquisition of overseas real estate for residential purpose does not entail any
restrictions with respect to the intended investment amount.
Thus we may note that South Korea has been far ahead of all its neighbors with regards
to CAPAC of residents. It has clearly distinguished between acquiring foreign real-estate
for investment purpose and for residing there. The amount of USD 1 million for
acquiring foreign real estate is same as Thailand. RBI can surely take some cues from
Korea with regards to implementing CAPAC for RIIs and make a proactive step towards
raising the ceiling of outward remittance to USD 1 million.
Philippines:
Philippines economy has been growing on average 5% in the last 5 years clocking a
growth rate of 7.27% in 2007 while inflation has been on the higher side (above 6% in
2004-2006), but it has been able to contain inflation to just 2.9% in 2007(See Exhibit 4).
On the other hand, net international reserves have grown by 47% (since Oct'06) and the
Philippine Peso has appreciated by 11% in the same period (See Exhibit 4).
So, on 3rd August, 2007, the Governor of Bangko Sentral ng Philipinas (BSP) modified
the Foreign Exchange Rules and Regulations of 1992 & 1993 (Circular No. 1327 and
1389). Accordingly, a Philippine Resident can purchase FX from AAB (Authorized
Agent Banks) or NBBSE (Non-Bank Bangko Sentral ng Pilipinas-Supervised Entities)
for outward investment in amount/s not exceeding USD 12 million per investor per year
without prior BSP approval from USD 1 million earlier (See Appendix 5). Equity
investments of BSP-supervised entities require prior BSP approval, regardless of amount.
Outward investments by residents exceeding USD 12 million per investor per year shall
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14. CAPAC Recommendations Economics and Social Sciences
require prior approval by and subsequent registration with the BSP. So while the amount
of outward investment is quite large, the BSP has made it mandatory for resident to
purchase the amount from Government backed AABs and NBBSEs and have also
specified that such outward investment can only be done in foreign currency denominated
bonds/notes of the Republic of the Philippines (ROP) or other Philippine entities(See
Appendix 5). So, no foreign real estate investment is allowed by resident Philippine.
The growth in forex reserves and appreciation of the peso in Philippines seems to be
much like the case of India and while BSP has at one step increased the limit on outward
remittance to USD 12 million (not for foreign real estate acquisition), one may have to
wait and see if this will have much effect on the foreign currency reserves and
appreciating peso.
Taiwan:
Republic of China (Taiwan) has been growing at the rate of 4% and above in the last 2
years while inflation has been hovering around 1%. Interestingly, we find from Exhibit 5
that the New Taiwan Dollar has appreciated by just 1.96% (since Oct 06) and in fact con-
tinuously depreciating against the dollar in the first half of 2007. Net forex reserves stood
at USD 262 billion – a mere 0.4% increase (since Oct 06). An analysis of the BoP data
reveals that Taiwan’s financial account consist of portfolio investment assets, including
equity securities and debt securities, which saw an outflow of USD 10.96 billion in
Q1(07-08) and USD 17.26 billion in Q2(07-08).
Table: Showing Financial Account details of Taiwan in last 1 year
2006 2007
1
C. Financial Account .. Q1r Q2r Q3r Q4r Q1r Q2p
Direct investment
abroad -1,960 -1,684 -2,072 -1,683 -1,941 -2,071
Direct investment in
R.O.C. (Taiwan)… 1,655 965 1,943 2,861 1,933 1,787
Portfolio investment
assets… -10,613 -10,820 -9,932 -9,418 -10,961 -17,206
Equity securities… -3,465 -4,511 -4,338 -6,167 -7,336 -14,255
Debt securities.... -7,148 -6,309 -5,594 -3,251 -3,625 -2,951
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15. CAPAC Recommendations Economics and Social Sciences
Portfolio investment li-
abilities..... 3,588 4,868 2,647 10,711 -771 10,148
Equity securities… 4,480 5,291 2,524 10,367 -11 10,575
Debt securities… -892 -423 123 344 -760 -427
Source : http://www.cbc.gov.tw/EngHome/eeconomic/statistics/BOP/new/eAQ.xls
Taiwan Headlines (2007) mentions that CBC officials indicate that Taiwanese enterprises
and individual investors have become more interested in purchasing overseas financial
products to diversify the risk of their financial investments. Since the real interest rate in
Taiwan is quite low, domestic investors prefer to launch investments in financial items
based on the U.S. dollar or in other foreign currencies. They have hence purchased main-
ly overseas funds, bonds, and securities. This was the reason for the forex reserves re-
maining almost same and not affecting the exchange rate of New Taiwan dollar. The
Central Bank of China (CBC) has been targeting capital outflow and defending the TWD
which have followed from the use of the TWD as a funding currency for carry trades. So,
Taiwan has gone largely unscathed in the current economic scenario where other East
Asian Economies has more or less met with the same fate of an appreciating currency.
The Foreign Exchange Control Act of Taiwan (see Appendix 6) specifies that single any
settlement of foreign exchange transaction (inward or outward) by a Taiwanese resident
above NT$ 500,000 (apprx USD 15,000) requires to be declared to the CBC. The limit
for non-residents is USD 100,000 but Article 6 also specifies that total accumulated
foreign exchange purchased or sold not exceeding USD 5 million by an association or
individual need not be declared to CBC. The Act has detailed the expenses and activities
for which outward remittance is allowed in Article 13 which allows Government
approved foreign investment or loan extended to foreign buyer. It does not specify if
foreign investment can include real estate. In Article 19 it has mentioned that the CBC
can suspend or restrict foreign exchange settlements any time in case of domestic
instability or balance of payments deficit. Any violation in declaration of foreign
exchange transaction limit will lead to heft fines as mentioned in articles 19-2 and 20 (see
Appendix 6).
Thus we may note that CBC has very well managed the CAPAC in Taiwan. It has set the
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16. CAPAC Recommendations Economics and Social Sciences
upper limit of remittances abroad to USD 5 million (without requiring to declare to CBC)
per year but at the same time kept per settlement limit to NTD 500,000 (USD 15,000
apprx) which ensures that a resident cannot transact in large amount of foreign currency
in a single transaction but overall outflow is ensured. Thus this does not affect the
exchange rate.
So for the case of India too, RBI can consider raising the upper limit of outward
remittance to USD 1 million as in the case of Malaysia and South Korea. However, it can
limit per settlement amount to avoid high volatility of fund flows during crisis as CBC
has done in Taiwan. According to the second Asia-Pacific Wealth Report published by
Merrill Lynch and Capgemini, India has the second fastest growing High Networth
Individuals (HNI) in India which stood at 100,000 in 2006 and grew by 20% (Business
Standard 2007, 3). As per the same Business Standard article HNIs are people with net
financial assets of at least USD 1 million, excluding their primary residence and
consumables while Ultra-HNIs are people with more than USD 30 million in financial
assets. The number of Ultra-HNI is an estimated 858 and Indian HNIs hold a combined
financial asset of USD 350 billion at the end of 2006 (Business Standard 2007, 3). With
the economic expansion and strong financial markets, this number is growing by day.
Hence many such resident Indians can afford to buy a home in a developed country or
location of their choice - the attractiveness in terms of an investment decision and better
quality of life and opportunity should be encouraged. And only liberalizing the CAPAC
for RIIs can make such a dream true. We will hence study the feasibility (whether laws
and regulations allows that) of RIIs acquiring homes in foreign locations like United
States of America, Canada and United Kingdom.
Real estate investment in Developed Countries:
As Economywatch.com (2007) rightly points out Real Estate Investment also follows a
business cycle and like any investment business-it has its peaks and troughs. Property
investment can lead to diversification of ones investment portfolio, as real estate
investments can be profitable and provide financial freedom in the long run. Real estate
investment can be attractive if viewed as a business opportunity; it can generate rental
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17. CAPAC Recommendations Economics and Social Sciences
income, using it as collateral to secure a loan for a business venture, to offset otherwise
taxable income through cash savings on tax-deductible interest rate losses, or simply
from the profits garnered from its resale (Economywatch.com 2007).
However, purchase of real estate in a foreign location requires careful planning starting
from choice of country, location, future value, living conditions, immigration laws and
tax considerations. With regard to tax the following require to be considered as
mentioned in website of Henleyglobal.com (2007)
1. Real-estate transfer taxes – Most countries levy this tax and hence real estate is
at times transferred indirectly by transferring the shares of a real estate holding
company in order to avoid paying real estate transfer taxes.
2. Annual real estate taxes – Most countries collect annual taxes on immovable
property which may not be very high.
3. Local inheritance and gift taxes – This is one of the main issues which relate to
taxes to be paid based on the value of real estate in case of an inheritance situation
or gifts which in many case is quite high.
4. Local inheritance laws and forced heirship rules – This is a big issue again.
5. Capital gains and other taxes upon the re-sale – This is an important
consideration when choosing a particular location on the re-sale value of foreign
real estate. Capital gains tax requires to be paid.
6. Immigration restrictions – Acquiring real estate in a particular country need not
necessarily guarantee immigration
7. Personal tax liability and tax residence - There might be case of double taxation
based on the location where foreign holiday home is situated.
We shall hence evaluate options of RIIs buying real estate in some of developed countries
of the West.
United States of America:
US real estate has traditionally been an attractive destination for foreign investors as it is
less volatile than other investments, interest rates are low compared to those in most other
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18. CAPAC Recommendations Economics and Social Sciences
countries, and U.S. real estate is seen as a “safe” investment (Yun and Fears 2005,
19-23). The U.S. market contains a large supply of real estate. US real estate has high
turnover rate and an easy exit option. Many international buyers also appreciate the equal
opportunity that U.S. real estate affords. There are few barriers to homeownership,
purchase or transfer of real estates in the U.S. except to the extent that may be necessary
to enforce U.S. Criminal laws or national security provisions (Yun and Fears 2005,
19-23). As per the same report, United States also does not restrict or scrutinize most
property purchases by foreigners, as do other countries. Foreign investors have the same
rights as those of American property owners. Real estates are also less exposed to the
effects of inflation than many other investments.
NATIONAL ASSOCIATION OF REALTORS® (NAR) established in 1908 helps
buyers and sellers of real estate properties in US. NAR conducted a survey of
REALTORS® in Florida in 2005 in order to better understand the extent of non-U.S.
resident homebuyers, why those buyers purchased homes in the U.S. The results are as
given below.
Source: Yun and Fears 2005, 22
US homes are generally considered more affordable compared to Europe and US is often
seen as a politically stable, economically strong country having good living conditions.
The top few countries investing in US real estate is as below.
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19. CAPAC Recommendations Economics and Social Sciences
Source: Yun and Fears 2005, 21
However, there are a number of issues which may hinder foreign real estate purchase in
the USA as described in web-site HenleyglobalUSA.com (2007) mentioned below:
1). Foreign investors/sellers have numerous reporting requirements - failure of which
may be punished with severe penalties (ranging from up to 25% of the fair market value o
the real estate).
2). Foreigner holding real estate in US may be required to pay up to 55% of inheritance
or gift taxes.
3). Even if one owns a house in US, he/she is not necessarily guaranteed entry and could
be denied entry for reason that one had immigration intent.
4). Foreigners are subject to estate tax with depending on the location of the property
situated in US while US citizens tax exposure is based on the personal status and not on
the location of assets.
5). Transferee of US real estate from foreign person is required to deduct and withhold
10% of the amount realized by the foreign person in the disposition.
Canada:
Canada is again a popular destination for immigration and foreign settlement because of
social and political stability, economic development, living conditions and spectacular
scenery. Residential property in Canada is generally cheaper than UK, USA and along
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20. CAPAC Recommendations Economics and Social Sciences
with healthy appreciation provides good investment opportunities (Buyassociation.com
2007). Canada's economy has been growing above 2.5% (Ontario.com 2007) for the last
3 years and with its wealth of natural resources makes it a self-sufficient economy with
focus on manufacturing, mining, energy and services sector.
Buying real estate property in Canada is very easy. As per Assignmentscanada.ca (2007)
if anyone stays in Canada for 6 months or less per year, the government considers them
as non-residents who are entitled to open a bank account and buy property. If staying for
more than 6 months, one must apply for immigration status. Majority of the provinces in
Canada have no restrictions on foreign ownership of real estate but some do limit the
amount of property/land that a non-resident can purchase. Purchase and sale of property
in Canada is usually done through realtors – the seller's agent and buyer's agent.
A non-resident can also try to qualify for mortgage financing in which case generally
35% down payment is required and 65% through mortgage (Assignmentscanada.ca
2007). A non-resident can also engage in sale of Canadian real estate held subject to
payment of Canadian tax of 50% of the gain (Assignmentscanada.ca 2007). This again is
quite high. If the property has been used for rental purpose, then 25% non-resident tax
must be paid on the gross rent a tenant pays(Assignmentscanada.ca 2007). However, non-
residents may be required to pay additional costs like various taxes - Property Transfer
(or Purchase) Tax/Land Transfer Fees, Clearance Certificate of CAD 300-1000, Good
and Services Tax on newly constructed homes, Provincial Sales Tax and Property Tax
which is to be paid annually(Assignmentscanada.ca 2007). A non-resident may have to
shell out additional expenses like Realtor's fees (3-7% of home's market value), Appraisal
fee, Survey fee, Lawyer's fees, Home Inspection fees, Property insurance, Service
Charges, and Condominium Fees (Assignmentscanada.ca 2007).
Canada is however less crowded, has easy availability of homes, high quality, less
expensive overall (land is less expensive, the cost of living is lower, the standard of living
is high). Purchasing a second home in Canada as an investment decision is attractive
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21. CAPAC Recommendations Economics and Social Sciences
considering the fact that the buying process a relatively easy and hassle free affair which
can only add even more value (Ezinearticles.com 2007).
United Kingdom:
There are again no restrictions on foreigners for purchasing real estate in the United
Kingdom. Investment in UK property has been very popular both because of the stability
of the UK property market and because of its tax friendly investment regime (compared
to other European countries) especially for those non-domiciled in the country
(Scfgroup.com 2007).
A foreign investor in UK can avoid paying real estate transfer tax by purchasing a
property through an offshore vehicle and transferring the shares in the real-estate owning
company, thus leaving the title to the UK real estate unchanged(Scfgroup.com 2007).
One can thus avoid inheritance tax, capital gains tax and stamp duty land tax (which is
1% - 4% of the real estate value and much less compared to other European countries)
through this offshore company vehicle (Scfgroup.com 2007).
Where a non-resident individual owns property a withholding tax of 22% or 40% will be
levied on rental income paid to the overseas landlord (Scfgroup.com 2007). A non-
resident of the UK is not subject to Capital Gains Tax in respect of gains made from the
sale of investment property with a UK sites provided a permanent establishment has not
been created in the UK. From the website Scfgroup.com (2007) the purchase of the
property is deemed to be an investment if gains may be realized tax-free and the
following points will indicate that the acquisition is an investment:
- the property should be held for as long as possible
- income is derived from rental of the property
- only a small amount of development should be carried out
- if the property is to be sold then it should be sold as a whole rather than sub
divided
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22. CAPAC Recommendations Economics and Social Sciences
Other expenses include local property tax, value added tax, solicitor's fees, estate agent
fees.
It has been estimated recently that as much as 70% of all property in prime areas of
London (such as Kensington, Chelsea and Belgravia) are owned via offshore tax efficient
structures (Scfgroup.com 2007).
A comparison of the appreciation in property prices in some industrialized nations is
shown in the below table. Property prices have shown to have risen by 14.8 percentage
changes in UK, 10% in Canada and 7% in US.
Nominal growth in house prices (Four quarter percentage changes, in national currency
units; period averages)
Source: Egert, B. and Mihaljek, D. Sep 2007, BIS Working Papers No 236:
Determinants of house prices in central and Eastern Europe
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Conclusion:
Before we analyze, the effect of liberalizing capital outflow for resident individuals, one
may stop to ponder if the present situation of sustained capital inflows into emerging
markets is really sustainable (Watanagase 2007). Does the investor community consider
investment in India less risky or has their risk appetite changed? There are some
permanent factors to ponder like – changing demographics (aging population of west
holding large pension funds), low cost of IT and telecommunication, opening up of the
economy and strong growth has led to investors money finding its place in developing
countries of Asia (Watanagase 2007). Moreover, the depreciation of the dollar to other
currencies and low interest rates worldwide has led to search for high yield riskier funds.
So, one may be accurate to say that inflow of funds will continue in the short-term and
may be in the long term if conditions prevail. And central banks in emerging markets of
Asia are left with a challenge to deal domestic inflation, transmission mechanism of
monetary policy and financial stability (Watanagase 2007).
Table: Comparison of Economic Indicators and CAPAC outflow policy for residents
GDP Inflation Net Currency Outflow policy for resident
growth (06-07) Foreign appreciation individuals
(06-07) currency (Oct-06 to
reserves Oct-07)
(Oct-06 to
Oct-07)
Thailand 4.4% 1.9% 32.5% 6.43% Can remit up to $1 mil
abroad for real estate
purchase and $100 mil
for aliens
Can hold foreign
currency accounts
balance of $ 0.5 mil and
$50 mil for aliens
Malaysia 6% 1.9% 21.25% 3.3% Can remit up to $30000
(apprx) for real estate
purchase and no limit for
resident without
domestic ringgit credit
Can invest up to $1.5 mil
(apprx) in foreign
currency assets without
domestic ringgit credit
South 4.02% 2.3% 4.19% Can remit up to $1 mil
Korea abroad for real estate
Residents can hold
deposits abroad without
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24. CAPAC Recommendations Economics and Social Sciences
any ceiling. Per
transaction limit $50,000
Philippines 7.27% 2.9% 47% 11% Can remit up to $ 12 mil
in Philippine instruments
abroad
Funds to be from Govt.
backed entities and
invested in FCDU of
Philippine institutions
Taiwan 4.45% 0.5% 0.4% 1.96% Can remit up to $ 5 mil
per year
No declaration required
for remittance up to $
15000 (apprx) per
transaction
India 9% 5% 58.79% 15.07% Can remit up to $
200,000 per year
A comparison of the capital controls for resident individuals in various East Asian
economies as summarized in table below shows that in spite of having the highest
increase in foreign currency assets and maximum appreciation of the currency, India’s
outward remittance policies for RIIs is lowest among other developing countries. All
countries like Thailand, Malaysia and South Korea revised their outward remittance
policies appropriately in the last 6 months in wake of the high dollar inflow. Taiwan is
the only Asian country much less affected by this as the Taiwanese residents invest in
overseas portfolio markets as they have upward limit of up to USD 5 million.
We however do not have adequate data to validate how much Indians have been remitting
abroad since RBI had revised the upward limit to USD 200,000 or for that matter what
has been the increase in outflows successive to every increase in ceiling by RBI.
However, it is imperative that RBI acts fast to remove barriers for foreign outflow for
resident individuals. As the number of HNIs and Ultra-HNIs increase in India, people
would like to hold diversified assets and be given the option of better quality of life. RBI
holds the key to that.
Block and Forbes (2004, 3) rightly argues it is a myth that
lifting capital controls increases a country’s vulnerability to financial crises and
capital controls should only be lifted after strengthening other financial, institutional
and macroeconomic capabilities.
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25. CAPAC Recommendations Economics and Social Sciences
Appendices:
Appendix 1: Circular issued by Bank of Thailand on 24th July, 2007
The Ministry of Finance and the Bank of Thailand deem it appropriate to relax regulations on
capital flows to promote more balanced capital movements, and to increase flexibility for Thai
businesses in managing their foreign currencies in order to enhance their competitiveness in the
world market. The key details are summarized as follows.
1. Allow companies registered in the Stock Exchange of Thailand, most of which are high-
performance businesses and subject to supervision by government agencies, to purchase foreign
currencies to invest abroad in an amount up to USD 100 million per year. Such registered
companies must have positive shareholder equity as shown in their latest financial statement, and
do not belong to the group of companies under business rehabilitation category.
2. Provide Thai residents, both juristic persons and individuals, with greater flexibility in depositing
foreign currencies with financial institutions in Thailand as follows.
2.1. Residents with funds originated abroad regardless of sources, such as export earnings or
foreign borrowing, may deposit foreign currencies with financial institutions in Thailand under the
following conditions:
a) Foreign currency accounts with future foreign exchange obligations. The total outstanding
balance for all foreign currency accounts can be up to the obligations within the next 12 months
but not exceeding USD 1 million for an individual or USD 100 million for a juristic person.
b) Foreign currency accounts with no future foreign exchange obligations. The total outstanding
balance for all foreign currency accounts can be up to USD 100,000 for an individual or USD 5
million for a juristic person.
2.2. Residents with foreign currency funds originated within the country, obtained either by
converting baht into foreign currencies, or by borrowing foreign currencies from financial
institutions in Thailand, can deposit such foreign currencies with financial institutions in Thailand
under the following conditions:
a) Foreign currency accounts with future foreign exchange obligations. The total outstanding
balance can be up to the obligations within the next 12 months but not exceeding USD 500,000
for a natural person or USD 50 million for a juristic person.
b) Foreign currency accounts with no future foreign exchange obligations. The total outstanding
balance may be up to USD 50,000 for an individual, or USD 200,000 for a juristic person.
3. Adjust the limit of fund remittances by Thai residents for various purposes. From now, the limit
of remittances for each purpose -for example, remittances to a family or a relative who is a
permanent resident abroad, donation to public, and remittances for purchase of real estates
abroad-will be raised to USD 1 million or equivalent per per year.
4. Relax the repatriation requirement for Thai residents with foreign currency receipts by
extending the period in which such receipts must be brought into Thailand from within 120 days (if
exceeding 120 days but not exceeding 360 days, a financial institution may provide approval on
behalf of the Competent Officer), to within 360 days. Further extension is possible only with
permissions by the Competent Officer. This relaxation will provide greater flexibility to the Thai
businesses in their granting of trade credits to their foreign customers.
5. Abolish the surrender requirement for Thai residents with foreign exchange receipts from
abroad to sell or deposit such receipts within the period of 15 days. This rule change not only will
provide more flexibility to Thai businesses and individuals in managing their foreign exchange
receipts, but will also allow financial institutions to set the procedural guidelines that best suit their
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26. CAPAC Recommendations Economics and Social Sciences
operations. However, financial institutions must announce such procedural guidelines to the
public so that customers can make an informed decision in choosing services from financial
institutions appropriately.
6. Relax the regulation on foreign portfolio investment by the institutional investors by allowing
institutional investors to invest in the form of deposits with financial institutions abroad without
seeking approval from the Competent Officer. Nevertheless, the deposited amount shall be
counted as part of the total amount allowable for investing abroad according to the foreign
exchange regulations. The relaxation is aimed at providing greater flexibility for institutional
investors in managing their investment funds. The Notifications and related information can be
viewed from the Bank of Thailand's website at www.bot.or.th under the "Highlight" topic. Further
information can also be obtained from the BOT Hotline center at 0-2283-6000 The above-
mentioned relaxation takes effect from 24 July 2007 except the relaxation on repatriation
requirement in No.4 which will come into force on the following day after the publication of related
Ministerial Regulations in the Government Gazette. The Bank of Thailand will notify financial
institutions of the effective date of the regulations.
Source: http://www.bot.or.th/bothomepage/General/PressReleasesAndSpeeches/PressReleases/
news2550/Eng/n3350e.htm
IIMB-PGSEM Page 26 of 51
27. CAPAC Recommendations Economics and Social Sciences
Appendix 2: Circular issued by Central Bank of Malaysia (1-Apr-2007)
Source:http://www.bnm.gov.my/view.php?
ch=190&pg=595&ac=7&fname=file&dbIndex=0&ex=1178566008&md=ju2-%C0a%9Db
%04.%D8u_8%BE%C7
IIMB-PGSEM Page 27 of 51
29. CAPAC Recommendations Economics and Social Sciences
Appendix 3: Summary of Credit Facilities allowed in Malaysia
Source:http://www.bnm.gov.my/view.php?
ch=190&pg=595&ac=5&fname=file&dbIndex=0&ex=1184992510&md=y%2B%91%BCc%2F
%C9VWWU.A%FBO%F9
IIMB-PGSEM Page 29 of 51
31. CAPAC Recommendations Economics and Social Sciences
Appendix 4: Forex Liberalization Plan in South Korea (19 May 2006)
The gist of medium and long term forex liberalization plan is summarized as below.
(Table 3)
Phase 1 (2006~2007) Phase 2 (2008~2009)
Won's a. Expand won-holdings by non- a. Expand scope of the won transactions
internationalizati residents exempted from reporting compliance
on b. Pursue listing of KRW/US$ futures in
overseas exchange house
c. Lower tax rates applied to non-
residents’ interest earnings from
investments in won-denominated local
bonds
d. Consolidate won accounts of similar
nature held by non-residents
e. Completely scrap limits on
export/import of the won
Liberalization of a. Allow acquisition of overseas real a. Liberalize acquisition of overseas real
overseas estate up to US$1 million or less estate by residents with complete lift of
investment by (‘ceiling’) for investment intent by investment ceiling
Korean individuals and companies
nationals * Ceiling to be upwardly adjusted in
phases
Abolishment of a. Mark up the threshold principal a. Put an end to the mandatory
the mandatory amount subject to the mandatory collection obligation
collection of collection obligation b. Instead, institutionalize ‘a reporting’
external credit b. Convert current ‘approval’ regime to system for the purpose of sound
‘reporting’ system with respect to ‘monitoring’ on overseas lending and/or
exemption from collection obligation capital transactions of such nature
exceeding certain amount
Appeasement of a. Soften procedural restrictions on a. Most capital transactions shall be
procedural capital transaction executed with simple reporting to
restrictions on (i.e, reporting to MOFE and/or BOK ‘foreign exchange banks’ with a few
the capital reporting to any foreign exchange exceptions including won-denominated
transactions banks in Korea) fund raising by non-residents and some
credit derivatives.
Permission of a. Expand permitted scope of foreign a. Allow all kinds of won-denominated
foreign exchange business by non-bank financial businesses stipulated under
exchange financial institutions each law and ordinance in foreign
business currencies
Advancement of a. Extend foreign exchange position in a. Completely lift foreign exchange
foreign phases position while include such purport in the
exchange b. Allow margin trading in foreign prudential regulations under each law
market currency and ordinance
c. Improve transaction structure in/of
the foreign exchange market with full
consultation with the Committee
Source:http://english.mofe.go.kr/news/pressrelease_view.php?sect=news_press&sn=4408
IIMB-PGSEM Page 31 of 51
32. CAPAC Recommendations Economics and Social Sciences
Appendix 5: Foreign Exchange Regulations in Philippines (Mar-2007)
Date Issued: 03.08.2007
Number: 0561
CIRCULAR NO. 561
Series of 2007
Subject: Amendments to Circular Nos. 1327 and 1389 dated 30 January 1992 and 13 April 1993,
respectively
Pursuant to Monetary Board Resolution No. 230 dated 22 February 2007, approving certain
reforms to liberalize foreign exchange rules and regulations, the following provisions of Circular
Nos. 1327 and 1389 dated 30 January 1992 and 13 April 1993, respectively, as amended, are
hereby further amended, as follows:
Section 1. Item 2 of Circular No.1327, as amended, shall now read as follows:
"2. Allowable open FX position - Banks' allowable open FX position (either overbought or
oversold) shall be the lower of 20 percent (20%) of their unimpaired capital or US$50 million.
For purposes of this section, unimpaired capital of foreign banks that are universal banks shall be
defined as permanently assigned capital plus the Net Due To Head Office account; Provided That
the amount of Net Due To Head Office that may be added to the permanently assigned capital
shall not exceed the equivalent of six (6) times the permanently assigned capital. For foreign
banks that are commercial banks, unimpaired capital shall be defined as permanently assigned
capital plus the Net Due To Head Office account; Provided That the amount of Net Due To Head
Office that may be added to the permanently assigned capital shall not exceed the equivalent of
eight (8) times the permanently assigned capital.
Any excess beyond the allowable limit shall be settled on a daily basis.
Penalties on excess overbought and oversold positions of banks when PDS trading is suspended
shall be waived.”
Section 2. The following sections of Circular No. 1389, as amended, are hereby further
amended, as follows:
1. Section 2 shall now read as follows:
“Section 2. Sales of Foreign Exchange by AABs, NBBSEs and Forex Corporations for Non-Trade
Transactions. AABs, Non-Bank Bangko Sentral ng Pilipinas-Supervised Entities (NBBSEs), and
their subsidiary/affiliate forex corporations may sell foreign exchange to residents to cover
payments to foreign beneficiaries for non-trade current account purposes (e.g., educational
expenses, medical expenses, travel expenses and salaries of foreign expatriates) without need
for prior Bangko Sentral ng Pilipinas approval, subject to the following documentary requirements
and guidelines:
a. For sales not exceeding US$10,000
-Application to purchase foreign exchange using the prescribed format;
IIMB-PGSEM Page 32 of 51
33. CAPAC Recommendations Economics and Social Sciences
b. For sales exceeding US$10,000
-Application to purchase foreign exchange using the prescribed format and supported by
documents specified under existing rules.
For sale of foreign exchange, regardless of amount, for payment of non-trade obligations that are
foreign currency loan- or foreign investment-related, the documents prescribed under existing
rules shall apply.
NBBSEs, including Forex Corporations, shall not sell foreign exchange to:
a. Non-residents; and
b. Residents for –
1) Investment purposes (whether domestic or abroad) including capital repatriation and
remittance of profits and dividends thereon;
2) Payment of foreign exchange obligations to residents other than AABs;
3) Payment of unregistered foreign currency loans/ obligations to non-resident financial
institutions.
However, outstanding unregistered loans/obligations as of 27 October 2000 may continue to be
serviced by forex corporations.
4) Payment of FCDU loans not eligible to be serviced with foreign exchange purchased from the
banking system. However, FCDU loans outstanding as of 27 October 2000 may continue to be
serviced by forex corporations.
AABs shall not sell foreign exchange to residents for payment of foreign exchange obligations to
residents other than AABs.
2. Section 44 shall now read as follows:
“Section 44. Outward Investments by Philippine Residents.
A resident may invest provided that:
1. the investments are funded by withdrawals from FCDUs; or
2. the funds to be invested are not among those required to be sold to AABs for pesos; or
3. the funds to be invested are sourced from AABs but in amounts not exceeding US$12 million
per investor per year.
An application to purchase foreign exchange for outward investments, whether or not prior
Bangko Sentral ng Pilipinas approval is required, shall be accompanied by the documents
specified under existing rules.
For purposes of this section, investments in foreign currency denominated bonds/notes of the
Republic of the Philippines (ROP) or other Philippine entities are considered outward
investments.
Outward investments by residents (excluding BSP-supervised entities) funded with foreign
exchange purchased from AABs in amounts exceeding US$12 million per investor per year shall
IIMB-PGSEM Page 33 of 51
34. CAPAC Recommendations Economics and Social Sciences
require prior approval and registration by the Bangko Sentral ng Pilipinas. Existing rules on
outward investments of BSP-supervised entities shall continue to apply.
Foreign exchange acquired or received by residents as dividends/earnings or divestment
proceeds from outward investments funded by foreign exchange purchased from AABs shall be
inwardly-remitted within 15 banking days from date of receipt and sold for pesos thru AABs within
three (3) banking days from receipt in the Philippines.”
Section 3. Repealing Clause. All provisions of existing BSP issuances that are inconsistent
herewith are deemed modified accordingly.
Notwithstanding the liberalization of foreign exchange rules and regulations, banks are reminded
to adopt and adhere to sound policies in undertaking their foreign exchange transactions.
This Circular shall take effect on 2 April 2007.
FOR THE MONETARY BOARD
AMANDO M. TETANGCO, JR.
Governor
Clarifications (issued 13 April 2007)
Source: http://www.bsp.gov.ph/downloads/Publications/FAQs/fxregulations.pdf
Appendix 6: Excerpts from Foreign Exchange Control Act in Taiwan
Article 5: The settlement of foreign exchange against the New Taiwan dollar involving the
following foreign exchange receipts and disbursements or transactions may not be
processed until the banking enterprise has confirmed that the Declaration Statement is consistent
with relevant contracts and letters of approval that evidence the foreign exchange receipts and
disbursements or transactions in question :
1. A single remittance by a company or a firm with an amount over United States dollars 1
million;
2. A single remittance by an association or an individual with an amount over United States
dollars 500,000;
3. Remittances approved by the competent authorities for direct investment or portfolio
investment;
4. Outward remittances to Mainland China, except for remittances that do not require evidencing
documents pursuant to other regulations of the Bank ;
5. Remittances for transactions conducted within the territory of the Republic of China involving
goods or services located outside the territory of the Republic of China; and
6. Remittances that require evidencing documents for verification by banking enterprises
pursuant to other regulations of the Bank.
Article 6 The settlement of foreign exchange against the New Taiwan dollar involving the
following foreign exchange receipts and disbursements or transactions may not be
processed until the declarant has received approval from the Bank by submitting the Declaration
Statement along with evidencing documents through banking enterprises :
1. Essential remittances by a company or a firm whose accumulated amount of foreign
exchange purchased or sold within one year has exceeded United States dollars 50 million; or
IIMB-PGSEM Page 34 of 51
35. CAPAC Recommendations Economics and Social Sciences
essential remittances by an association or an individual whose accumulated amount of foreign
exchange purchased or sold within one year has exceeded United States dollars 5 million;
2. The following remittances where a single remittance by a non-resident exceeds United
States dollars 100,000 in foreign exchange purchased or sold:
(1) Funds for engaging in construction projects within the territory of the Republic of
China;
(2) Guarantees and arbitration fees due for deposit as a result of pending legal cases within the
territory of the Republic of China;
(3) Funds relevant to real estate for self use within the territory of the Republic of China that
has been legally acquired or approved by the competent authorities; and
(4) Inheritance, insurance claims, and pensions legally acquired within the territory of the
Republic of China.
3. Other essential remittances.
Article 13
Foreign exchange needed to pay for the following expenses or activities may be drawn by the
payer from his/her foreign exchange deposit account as set forth in Article 7 or bought in the
foreign exchange market through an authorized bank, or bought from the Central Bank of China
or one of its authorized banks; related measures shall be stipulated by the Ministry of Finance
jointly with the Central Bank of China.
1. Costs and expenses of merchandise approved for import;
2. Expenses and obligations to be paid by the shipping business, insurance business or people of
other trades as a result of trade or service received;
3.Expenses for attending school, taking a business tour, traveling, seeking medical treatment,
visiting relatives, employment, or doing business abroad;
4. Money sent to support families abroad by citizens or foreign individual who work for a local
business within the territory of the Republic of China;
5. Principal, interests and net profits relating to investments of foreign individual and overseas
Chinese in the Republic of China;
6. Payment for principal interests and guarantee expenses of government-approved foreign
loans;
7. Remuneration for foreign individual and overseas Chinese for technical cooperation with local
enterprises;
8. Government-approved foreign investment or loan extended to foreign borrower; and
9. Other necessary payments and obligations.
Article 19-1
In case of any of the following situations, the Executive Yuan may decide and announce with a
public notification to close the foreign exchange market, suspend or restrict all or some foreign
exchange settlements, order the selling or deposit of all or some types of foreign exchange into
an authorized bank, or take other necessary measure for a specific time period:
1. When the domestic or foreign economic disorder might endanger the stability of the domestic
economy.
2. When this country suffers a severe balance of payments deficit.
The items and targets of aforesaid action shall be specified in Regulations Governing Foreign
Exchange Control stipulated by the Executive Yuan.
The aforesaid decision shall be submitted to the Legislative Yuan for acceptance within ten days
after it is announced and shall become invalid once the Legislative Yuan rejects it.
The specified time period stipulated in Paragraph 1 shall not be longer than 20 days, provided the
Legislative Yuan is not in session.
Article 19-2
IIMB-PGSEM Page 35 of 51
36. CAPAC Recommendations Economics and Social Sciences
Intentional violation of the measures taken by the Executive Yuan pursuant to Article 19-1 herein
shall be subject to a fine under NT$3,000,000. Notwithstanding of the foregoing provision, the
violator shall be exempt from the penalty provided the Legislative Yuan rejects the measures
taken by the Executive Yuan subsequently.
Article 20
Violation of Article 6-1 herein involving intentional omission of declaration or making untruthful
declaration shall be subjected to a fine of more than NT$30,000 and less than NT$600,000; the
same provision applies to failure to provide explanation within a specified time period or providing
false explanation.
Violation of Article 7 herein involving not selling or depositing foreign exchange to or with the
Central Bank of China or one of its authorized banks shall be subjected to a fine that amounts to
twice the sum not deposited or not sold converted into New Taiwan Dollar at the then prevailing
exchange rate, and the Central Bank of China will pursue the return of foreign exchange.
Article 22
People who engage in foreign exchange transactions illegally as a regular profession shall be
subjected to a prison term or detention of less than three years, and/or a fine that amounts to
their total business turnover; the foreign exchange and the payment or proceeds thereof shall be
confiscated as well.
In case the representative of a juristic person, the agent of a juristic person or a natural person,
the employee or business associate of a juristic person in other capacity violates the provision
stipulated in the preceding paragraph while conducting business, the juristic person or natural
person shall be fined the same amount as imposed on the offender.
Source: http://www.cbc.gov.tw/enghome/Elegal/Related/RLR-1.htm
IIMB-PGSEM Page 36 of 51
37. CAPAC Recommendations Economics and Social Sciences
Exhibits:
Exhibit 1: Key Economic Indicators in Thailand
Source: Bank of Thailand (2007)
Thai Foreign Reserves in Billions of Dollars
100
80
60
40
20
0
Oct- Nov- Dec- Jan- Feb- Mar- Apr- M Jun- Jul- Aug- Sep- Oct-
06 06 06 07 07 07 07 ay- 07 07 07 07 07
07
Series1
Source:http://www.bot.or.th/bothomepage/databank/EconData/EconFinance/Download/T
ab49.xls
IIMB-PGSEM Page 37 of 51
38. CAPAC Recommendations Economics and Social Sciences
Baht vs USD
37
36
35
34
33
32
Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct-
06 06 07 07 07 07 07 07 07 07 07 07
Baht vs USD
Source:
http://www.bot.or.th/bothomepage/databank/FinMarkets/ExchangeRate/exchange_e.asp
Exhibit 2: Key Economic Indicators in Malaysia
Malaysia's GDP growth
8
6
4
2
0
Ap 2
De 3
Ap 3
De 5
Ap 5
De 4
Ap 4
De 6
Ap 6
07
Au 4
Au 5
Au 6
Au 3
Au 7
0
0
0
0
r- 0
r- 0
r- 0
r- 0
r- 0
0
0
0
0
0
c-
g-
c-
g-
c-
g-
c-
g-
c-
g-
De
Series1
Source: Central Bank of Malaysia (2007)
IIMB-PGSEM Page 38 of 51
39. CAPAC Recommendations Economics and Social Sciences
Source: Central Bank of Malaysia (2007)
IIMB-PGSEM Page 39 of 51
40. CAPAC Recommendations Economics and Social Sciences
Exhibit 3: Key Economic Indicators in South Korea
South Korea GDP growth
7
6
5
4
3
2
1
0
Ap 2
De 3
Ap 3
De 5
Ap 5
De 4
Ap 4
De 6
Ap 6
07
Au 4
Au 5
Au 6
Au 3
Au 7
0
0
0
0
r- 0
r- 0
r- 0
r- 0
r- 0
0
0
0
0
0
c-
g-
c-
g-
c-
g-
c-
g-
c-
g-
De
Series1
Source: The Korean Economy 2006 (Published by Bank of Korea)
IIMB-PGSEM Page 40 of 51
41. CAPAC Recommendations Economics and Social Sciences
Exchange rate trend in South Korea
IIMB-PGSEM Page 41 of 51
42. CAPAC Recommendations Economics and Social Sciences
Exhibit 4: Key Economic Indicators in Philippines
Philippines GDP growth
8
6
4
2
0
Ap 2
De 3
Ap 3
De 5
Ap 5
De 4
Ap 4
De 6
Ap 6
07
Au 4
Au 5
Au 6
Au 3
Au 7
0
0
0
0
r- 0
r- 0
r- 0
r- 0
r- 0
0
0
0
0
0
c-
g-
c-
g-
c-
g-
c-
g-
c-
g-
De
Series1
Source : http://www.bsp.gov.ph/statistics/spei/tab46a.htm
Inflation rate in Phillipines
2002 3
2003 3.5
2004 6
2005 7.6
2006 6.2
2007 2.6
Source: http://www.bsp.gov.ph/statistics/spei/tab46a.htm
Peso vs USD
54
52
50
48
46
44
42
40
38
06
06
07
6
7
06
6
7
07
6
7
-0
-0
l-0
l-0
-0
-0
v-
n-
n-
p-
p-
ar
ar
ay
ay
Ju
Ju
No
Ja
Ja
Se
Se
M
M
M
M
Series1
Source: http://bsp.gov.ph/statistics/spei/tab12.htm
IIMB-PGSEM Page 42 of 51
43. CAPAC Recommendations Economics and Social Sciences
Net Foreign Reserves(Philippines)
35000
30000
25000
20000
15000
10000
5000
0
06
06
07
6
7
6
06
7
07
6
7
-0
-0
l-0
l-0
-0
-0
v-
n-
n-
p-
p-
ar
ar
ay
ay
Ju
Ju
No
Ja
Ja
Se
Se
M
M
M
M
Series1
Source : http://www.bsp.gov.ph/statistics/spei/tab5.htm
IIMB-PGSEM Page 43 of 51
44. CAPAC Recommendations Economics and Social Sciences
Exhibit 5: Key Economic Indicators in Taiwan
Taiwan's GDP
10
8
6
4
2
0
Ap 2
De 3
Ap 3
De 5
Ap 5
De 4
Ap 4
De 6
Ap 6
07
Au 4
Au 5
Au 6
Au 3
Au 7
0
0
0
0
r- 0
r- 0
r- 0
r- 0
r- 0
0
0
0
0
0
c-
g-
c-
g-
c-
g-
c-
g-
c-
g-
De
Series1
Source: http://www.bsp.gov.ph/statistics/spei/tab46a.htm
Inflation Rate in Taiwan
2.5
2
1.5
1
0.5
0
-0.5
Ap 2
De 3
Ap 3
De 5
Ap 5
De 4
Ap 4
De 6
Ap 6
07
Au 4
Au 5
Au 6
Au 3
Au 7
0
0
0
0
r- 0
r- 0
r- 0
r- 0
r- 0
0
0
0
0
0
c-
g-
c-
g-
c-
g-
c-
g-
c-
g-
-1
De
Series1
Source: http://www.bsp.gov.ph/statistics/spei/tab46a.htm
IIMB-PGSEM Page 44 of 51
45. CAPAC Recommendations Economics and Social Sciences
Taiwan dollar to USD
33.5
33
32.5
32
31.5
31
06
06
07
6
7
06
6
7
07
6
7
-0
-0
l-0
l-0
-0
-0
v-
n-
n-
p-
p-
ar
ar
ay
ay
Ju
Ju
No
Ja
Ja
Se
Se
M
M
M
M
Taiwan dollar to USD
Source : http://www.cbc.gov.tw/EngHome/statistics.asp
Net Forex Reserve in Taiwan
270,000
265,000
260,000
255,000
250,000
6
6
07
6
7
7
6
6
7
6
7
-0
-0
-0
-0
-0
-0
-0
0
l-0
l-0
n-
n-
ov
ar
ar
ay
ep
ep
ay
Ju
Ju
Ja
Ja
M
M
N
M
M
S
S
Net Forex Reserve in Taiwan
IIMB-PGSEM Page 45 of 51
46. CAPAC Recommendations Economics and Social Sciences
Exhibit 6: Key Economic Indicators in India
Rupee Vs USD Exchange Rate
46
44
42
40
38
36
Oct- Nov- Dec- Jan- Feb- Mar- Apr- M Jun- Jul- Aug- Sep- Oct-
06 06 06 07 07 07 07 ay- 07 07 07 07 07
07
USD
Source: http://www.rbi.org.in/home.aspx
Forex Reserves in India
300,000
250,000
200,000
150,000
100,000
50,000
-
11/6/2006
10/6/2006
12/6/2006
1/6/2007
2/6/2007
3/6/2007
4/6/2007
5/6/2007
6/6/2007
7/6/2007
8/6/2007
10/6/2007
9/6/2007
Foreign Exchange
Source: http://www.rbi.org.in/scripts/Statistics.aspx
IIMB-PGSEM Page 46 of 51
47. CAPAC Recommendations Economics and Social Sciences
India's Inflation
7
6
5
4
3
2
1
0
A 3
A 4
D 5
D 6
A 2
A 5
A 6
D 3
D 4
7
A 3
A 4
A 6
A 7
A 5
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
ec
ec
ec
ec
ec
ug
ug
ug
ug
pr
pr
pr
pr
pr
ug
D
Series1
IIMB-PGSEM Page 47 of 51
48. CAPAC Recommendations Economics and Social Sciences
References:
Tarapore, S.S., Bhide, M.G., Rajwade, A.V., Bhalla, S.S., Patil, R.H., Ranade, A. (2006)
Report of the Committee on Fuller Capital Account Convertibility. Reserve Bank of India
– Department of External Investments & Operations
Rangarajan, C., Chadha G.K., Chaudhuri, S., Jha, S., Rao, G., Tendulkar, S., Sheel, A.,
(2007), Economic Outlook for 2007-08. Economic Advisory Council to the Prime
Minister, Vigyan Bhavan, New Delhi.
Moorthy, V. (24-26 Feb, 1997) Capital Account Convertibility 3-part series. Business
Line, The Hindu publications.
Business Standard (18 Oct, 2007) Indian HNI club swells 20% to 1 lakh in 2006. ABP
publications.
Block, B. and Forbes, K. (2004) Capital Flows to Emerging Markets: The Myths and
Realities: Paper prepared for the Conference “Myths and Realities of Globalization” at
the Federal Reserve Bank of Dallas
Yun, L., Fears, K. (2005) FOREIGN INVESTMENT IN U.S. REAL ESTATE - Current
Trends and Historical Perspective. Realtor Research
Watanagase, T. (2007) Panel Discussion on Financial Globalisation, Capital Flows,
and Challenges for Central Banks: 77th BIS AGM, 24 June 2007, Basel, Switzerland
Rbi.org: Reserve Bank of India website http://www.rbi.org.in/home.aspx (accessed 16th
Nov, 2007)
Central Bank of Malaysia: http://www.bnm.gov.my/ (accessed 16th Nov, 2007)
Bank of Thailand: Central bank of Thailand website.
http://www.bot.or.th/bothomepage/index/index_e.asp (accessed 18th Oct, 2007)
Bank of Korea: Central bank of Korea website http://www.bok.or.kr/eng/index.jsp
(Accessed 16th Nov, 2007)
Central Bank of China: Taiwan central bank website
http://www.cbc.gov.tw/EngHome/default.asp (Accessed 10th Nov, 2007)
Central Bank of Philippines: http://www.bsp.gov.ph/ (Accessed 10th Nov, 2007)
Central Bank of Malaysia: http://www.bnm.gov.my/ (Accessed 10th Nov, 2007)
EAC.in: Economic Advisory Council in India http://eac.gov.in/ (accessed 10th Oct,
IIMB-PGSEM Page 48 of 51