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Courting Risk : Policy Manoeuvres on FII Inflows C. P. Chandrasekhar

A recent government report on FII inflows into the Indian stock market reflects the growing chasm between the view points of the Finance Ministry and the Central Bank on the matter. While the report advocates the cause of the FIIs, the RBI, concerned about the macroeconomic implications of excessive capital inflows and outflows, has virtually disowned much of it. In this critique, the author looks at the various arguments.

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