DOI Prefix : 10.9780 | Journal DOI : 10.9780/22307850
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Volume : III, Issue : XI, December - 2013

An Empirical Analysis Of Private Equity ( Pe ) Flows In India

Roopali Sharma And Santosh Kumar

DOI : 10.9780/22307850, Published By : Laxmi Book Publication

Abstract :

Globalization of financial market & increasing risk bearing capacity among Global investors has given a birth to any new generation of financial intermediaries like the Private equity (PE), with the subsequent regulatory changes & financial innovations motivated the growth of alternative asset class like PE. Many countries, including India, limited the free flow of foreign money till the early 1990s. The foreign money flows since 1990s can be attributed to greater amalgamation among international financial markets, expansion in information technology and the rising interest in EMEs among FIIs in the form of private equity funds (PE) and hedge funds. As PE flows are a source of non-debt creating capital in the economy, many Economy of Emerging Markets (EMEs) has been challenging with each other to get such Fund flows by diluting investment regulations or by providing economical benefits. The present study examines the effects of PE net flows in Indian Economy considering variable like GDP on factor Cost(CGF), IIP, WPI, weighted average call money interest rates (CMR), foreign exchange reserves (FER), average USD/ INR exchange rate (ERU) , weighted average return of 10 years Central Gsec bond (GSR) , key Bank rates (KBR) and BSE top 100 share by index BSE-100 ( BSE-100) with respect to data for the period April 2007– September 2013, i.e., a time span of 6 years, covering the time before, during and after the global financial crisis by the statistical correlation test and t-statistical test by two tailed significance level test method.

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Cite This Article :

Roopali Sharma And Santosh Kumar, (2013). An Empirical Analysis Of Private Equity ( Pe ) Flows In India. Indian Streams Research Journal, Vol. III, Issue. XI, DOI : 10.9780/22307850,

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