Date:02/02/2005 URL: http://www.thehindubusinessline.com/2005/02/02/stories/2005020202401500.htm

Back DSP Merrill arranges `familiarisation trip' to foreign investors

Our Bureau

The concerns of these potential investors largely revolve around the lack of enthusiasm in foreign direct investment in India.

Mumbai , Feb. 1

OVER 130 foreign investors are virtually knocking on Indian doors to make a foray into investments in India. These investors from Europe and the US are in India on a weeklong country familiarisation trip being organised by DSP Merrill Lynch.

In the course of the week, heads of corporates and government officials would be helping these potential investors understand the economy, reform process and corporate performances.

The delegation comprised hedge funds and institutional investors. They are assessing the equities market, private equity and venture capital and in some cases even investments in property, said Mr. Andrew Holland, Executive Vice-President - Research, DSP Merrill Lynch.

On the reforms front, these investors are "pleasantly surprised" by the implementation of value added tax. Also, the Government's decision to allow all non-Government provident funds, superannuation funds and gratuity funds to invest in equity market is another step that is being considered favourably by these investors, Mr Holland informed.

The concerns of these potential investors largely revolve around the lack of enthusiasm in foreign direct investment in India. "They are concerned about not having seen any big investors entering India through the FDI route," he said.

Though presentation to these investors are across the board, the sectors that they have shown interest in are banking, automobile, oil, pharmaceuticals. Mid-cap stocks are also being discussed.

The conference was held in New Delhi on Monday and Tuesday and moves to Hyderabad for the next three days.