https://www.taxtmi.com/news?id=24580 Capital account convertibility is the progressive liberalisation enabling conversion of domestic and foreign financial assets; its expansion requires balancing the benefits of broader investor access and improved liquidity against risks such as sudden reversals, exchange volatility and asset bubbles. Policy responses emphasise first strengthening macro fundamentals and market infrastructure, then deploying capital flow measures and macroprudential tools-capital, liquidity and borrower-based-to manage flow volume, composition and systemic exposure. India's calibrated liberalisation includes near-unrestricted FDI, staged FPI access with caps on debt, ECB rules for medium-to-long tenor corporate borrowing, and emerging moves like the Fully Accessible Route and deeper onshore-offshore market integration that demand careful sequencing and information flows. en-us Sat, 16 Oct 2021 11:20:02 +0530 Sat, 16 Oct 2021 11:20:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=24580 Capital account convertibility is the progressive liberalisation enabling conversion of domestic and foreign financial assets; its expansion requires balancing the benefits of broader investor access and improved liquidity against risks such as sudden reversals, exchange volatility and asset bubbles. Policy responses emphasise first strengthening macro fundamentals and market infrastructure, then deploying capital flow measures and macroprudential tools-capital, liquidity and borrower-based-to manage flow volume, composition and systemic exposure. India's calibrated liberalisation includes near-unrestricted FDI, staged FPI access with caps on debt, ECB rules for medium-to-long tenor corporate borrowing, and emerging moves like the Fully Accessible Route and deeper onshore-offshore market integration that demand careful sequencing and information flows. News - Sat, 16 Oct 2021 11:20:02 +0530 https://www.taxtmi.com/news?id=24580