In a small developing country like Trinidad and Tobago, there are practical considerations of the effect that unfettered overseas investment would have on exchange markets and the exchange rates.
Whatever investment regime is finally decided upon for the long term, its efficiency and sustainability will ultimately depend on (i) a significant increase in the range of available domestic investments (including government securities and private bonds); increasing liquidity in the stock market by encouraging more listings providing inducements for trading as opposed to the current system of “buy and hold” and reducing the dependence of the stock market on institutional investors.