REVISION
– THE HINDU – EDITORIAL NO.6-JUNE 2018
6.
MSCI Inc., a widely-tracked global index provider said it is considering
placing some emerging
markets
including India on notice for limiting investor access
What
is MSCI?
It
is the world’s biggest index compiler, with more than $10 trillion in assets
benchmarked to its products, with emerging
markets
alone accounting for $2 trillion.
Why
are MSCI indices important?
The
indices are closely tracked by global investors. Inclusion in MSCI Inc.’s stock
indices opens up investment interest
from
foreign investors in a particular country and brings a stamp of financial
credibility.
What
happens if MSCI caps India’s weightage?
India
currently has a weightage of 8.3% in the MSCI Emerging Markets Index. The
weightage, which was 8.48% till last
month,
came down slightly following the partial inclusion of China A- shares on May
31.
Since
it is a widely tracked index, any changes in weightage would affect inflows
from foreign investors.
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