The third factor I am particularly attentive to is developments in overseas economic activity and prices and in global financial and capital markets. Amid a continued rise in inflation, mainly in advanced economies, central banks have been raising policy rates significantly.
These will be subject to government’s policy in this regard. All cases of acquisition or holding of 5 per cent and above, in case of FIIs, will require acknowledgment by RBI as per February 3, 2004 guidelines. Where the investing entity is a ‘sub account’, full details of the investor/s and other particulars required for due diligence will be called for.