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Sovereign funds under the lens

April 30, 2008

The Indian Government is concerned about the growing interest of sovereign wealth funds (SWFs) in the country. The Finance Ministry is now monitoring such inflows. A senior bureaucrat told BT: “We are now planning to evolve a policy to regulate sovereign wealth fund investments in the country.”

SWFs are pools of money derived from a country’s reserves, which are set aside for investment purposes.

Funding comes from the central bank’s reserves. North Block is now worried about the government of a particular country acquiring control of strategic sectors in India. Says the official: “There are justified national security concerns. Even the US and other OECD countries are trying to work out ‘rules of conduct’ for SWFs.”

Rishi Joshi

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