Third, price-based measures such as taxes could be examined though their effectiveness is arguable and hence may not be desirable. Fourth, FDI flows, as currently defined, also include transfer of equity from residents to non-residents and a disaggregated analysis of FDI through several routes could enable a policy-intervention, as appropriate on quantities and quality.
Fifth, since there are several routes by which non-residents could hold shares and voting power over Indian corporates, reporting and monitoring arrangements could be considered for assessing the aggregate shares of residents (other than government) and non-residents in larger corporates and those in sensitive sectors in particular. Such monitoring could help timely policy-responses on several fronts.