Pressing the need to incentivise retail investors to enter domestic capital markets, HDFC bank chairman Deepak Parekh has called for cutting down the dominance of foreign institutions, states a PTI report.
He further added that although FIIs (Foreign Institutional Investors) have invested USD 15.9 billion in equity and debt in India this year, they are big party-hoppers.
“We have to incentivise and encourage retail investors to enter our capital market because it cannot be dominated by foreign institutions. If they don’t like your music and if they don’t like the drinks being served, they will find another party to hop on to really quickly,” he said.
According to Parekh, retail investors are still hesitant and it is unfortunate that they enter markets on the highs, instead of investing on the lows.
“The bigger concern is the impact of inflation, and food prices in particular. Unless there is a willingness to change the supply chain management, food inflation is unlikely to come down,” he said.
Pitching for the need to have more private warehousing and cold storage facilities, he called for dismantling of APMC (agricultural produce market committee) laws.