This too needs to be addressed appropriately. Portfolio flows   The Report of the Committee on Foreign Investment has recommended introducing a single channel of foreign investments, QFI, for all foreign investors. While the regulations for various channels is well appreciated, the Committee has suggested opening up the QFI route to all foreign investors, including individuals, subject to compliance with KYC requirements.
The issue here is not merely access to stock markets but has much larger implications. In effect, it would imply permitting all foreign residents to open accounts in India for their transactions and permitting them access to other market segments for their hedging requirements. The entire gamut of ramifications needs to be thought through carefully as this would result in full capital account convertibility.