Morgan Stanley Capital Investment (MSCI) is set to implement the new regime on foreign ownership limits (FOL) in the MSCI Global Indexes containing Indian securities effective December 1, 2020. Based on an analysis by Ridham Desai, head of India research and India equity strategist at Morgan Stanley and Sheela Rathi, their equity research analyst, the MSCI India index could see passive inflow to the tune of $2.5 billion due to this development.
As per the new regime, where the FOL for securities in the MSCI India Equity Universe would be equal to the limit as per the automatic route except