FIIs not keen to take the Q from Pranab

The Budget turned out to be almost a non-event for foreign fund managers with barely any proposal in the finance minister’s speech that was aimed at attracting foreign funds through the stock market route.
Although the Budget proposed to allow qualified foreign investors (QFIs) to access the corporate bond market, people familiar with foreign investments said not many would be interested in tapping this route.The reason being that other avenues offer better tax treatment to their income in India.
For foreign investors, the Budget has not signalled a turn, said Sampath Iyengar, MD, Ada Investments, a New York-based FII. “India will still be viewed as the same emerging market with a steadily rising GDP, unable to fulfill its potential. Allocations to India will continue to be based on other factors as we have seen in early 2012.”
“From here on, international events and their impact on India, and also the quarterly results, that will start coming from the second week of April, would be the focus,” said Vikas Khemani, president & head, wholesale capital market, Edelweiss Financial Services.
Budget 2012
Budget News 2012