Poonam Mahajan

Member of Parliament,North-Central Mumbai

National President-BJYM

poonam Mahajan

Poonam Mahajan

Member of Parliament,North-Central Mumbai

National President-BJYM

Sovereign Wealth Fund

UNSTARRED QUESTION NO: 518 ANSWERED ON: 20.07.2018 Sovereign Wealth Fund POONAM MAHAJAN

Will the Minister of FINANCE  be pleased to state:- Whether various Governments of the world have channeled their investments in the country through the Sovereign Wealth Fund (SWF);

(b) if so, the details thereof including the legal, implementation and operational framework under which investments from SWF are being carried out in the country and the benefits accrued from the same; and

(c) the details and the amount of funds invested by each SWF in the country during each of the last ten years, year-wise

ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI. PON.RADHAKRISHNAN)

a) & b) As on June 30, 2018 there are 24 countries whose Governments as Sovereign Wealth Funds (SWFs) have channeled their investments in India under the regulatory framework for Foreign Portfolio Investors. The list of the countries along with their total assets under custody as on June 30, 2018 is in Annexure 1. Section 12 (1A) of SEBI Act, 1992 stipulates that no foreign institutional investor shall buy or sell or deal in securities except under and in accordance with the conditions of a certificate of registration obtained from the Board in accordance with the regulations made under this Act. Accordingly, SEBI (Foreign Portfolio Investors) Regulations, 2014 were notified to put in place a framework for registration and procedures with regard to foreign investors who propose to make portfolio investment in India. In terms of Regulation 5(a) of SEBI (Foreign Portfolio Investors) Regulations, 2014, sovereign wealth funds are eligible for registration as Category I foreign portfolio investor. Further, SEBI vide circular dated April 10, 2018 clarified on the clubbing of investment limits of foreign Government/ foreign Government related entities including sovereign wealth funds. In terms of Regulation 21(7) of SEBI (Foreign Portfolio Investors) Regulations, 2014, the purchase of equity shares of each company by a single foreign portfolio investor or an investor group shall be below ten percent of the total paid up capital of the company. The investment by sovereign wealth funds is generally long term in nature and not speculative. The investment by sovereign wealth funds indicate stability of the funds flow in the country. c) The country wise net investment by sovereign wealth funds for the last six financial years, which is readily available, may be seen in Annexure 2.

Annexure 1 of the Lok Sabha Unstarred Question No. 518 to be answered on Friday, July 20, 2018/Ashadha 29/1940 (Saka) regarding “Sovereign Wealth Fund” List of the countries along with their total assets under custody as on June 30, 2018 Serial Number Country Name Total AUC (INR Crore) 1 SINGAPORE 1,16,058.86 2 NORWAY 68,865.70 3 UNITED ARAB EMIRATES 52,453.58 4 KUWAIT 28,728.10 5 CANADA 27,902.63 6 CHINA 25,436.51 7 MALAYSIA 25,249.94 8 MAURITIUS 14,094.88 9 SAUDI ARABIA 12,086.03 10 AUSTRALIA 8,398.12 11 SWEDEN 6,273.09 12 SOUTH KOREA 2,397.35 13 UNITED STATES OF AMERICA 2,273.44 14 NETHERLANDS 1,534.67 15 OMAN 977.88 16 NEW ZEALAND 963.20 17 UNITED KINGDOM 795.00 18 BAHRAIN 583.56 19 BRUNEI 338.28 20 JERSEY 251.88 21 JAPAN 195.47 22 THAILAND 50.58 23 QATAR 43.93 24 DENMARK 21.00 Total 3,95,973.68

Annexure 2 of the Lok Sabha Unstarred Question No. 518 to be answered on Friday, July 20, 2018/Ashadha 29/1940 (Saka) regarding “Sovereign Wealth Fund” Country wise net investment by sovereign wealth funds for the last six financial years (Figures in INR crore) Sr.No. Country 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Grand Total 1 Singapore 4875.37 10,450.09 (3712.06) 26,622.31 229.03 2868.12 41,332.86 2 Norway 9378.35 13,634.27 6605.16 2923.22 (5169.22) 5692.00 33,063.78 3 Malaysia 5560.59 8209.37 7186.81 (233.85) (975.99) 689.68 20,436.60 4 China - - 2842.74 18,745.21 (1263.83) (1454.51) 18,869.62 5 Saudi Arabia - - (187.48) 1768.58 3318.38 2457.30 7356.78 6 Canada 754.04 (37.18) (479.58) 2443.81 617.95 2968.70 6267.74 7 Netherland 4286.18 893.96 276.88 366.58 (242.07) (45.75) 5535.78 8 Kuwait 1101.18 931.40 1517.06 756.89 (230.65) (71.89) 4003.99 9 Australia (447.74) 431.13 1103.40 676.84 710.34 1371.68 3845.65 10 Sweden - - 1816.40 251.69 (74.02) 1243.15 3237.22 11 USA 708.44 334.09 586.04 19.03 140.99 (49.44) 1739.15 12 UK - (3.87) 149.02 446.23 636.02 (163.63) 1063.77 13 Oman - - 668.88 (34.27) (56.51) 208.01 786.11 14 New Zealand 40.36 15.12 (101.98) 191.81 51.01 234.22 430.53 15 Bahrain - - - 62.78 186.79 88.15 337.72 16 Japan - - - - - 195.80 195.80 17 Brunei (10.72) 26.50 185.08 (187.28) (16.75) 126.53 123.36 18 Thailand - - - 11.24 8.46 18.11 37.81 19 Denmark - - 21.00 - - - 21.00 20 France - - - - - - - 21 Canada (6.14) - - - - - (6.14) 22 Belgium - (3.89) (41.79) (5.83) - - (51.52) 23 Ireland 86.21 (143.46) (125.96) (0.05) - - (183.26) 24 Jersey - - - - - (322.76) (322.76) 25 Qatar 391.03 640.00 429.20 (899.67) 315.44 (1747.06) (871.06) 26 Korea 1555.62 (328.09) (820.73) (1899.63) (457.82) 176.20 (1774.46) 27 Mauritius 0.06 0.78 (36.45) 0.19 (297.54) (2382.00) (2714.96) 28 United Arab Emirates 5060.19 833.27 1241.76 333.05 (5668.26) (15,778.35) (13,978.34) Grand Total 33,333.02 35,883.47 19,123.40 52,358.89 (8238.27) (3677.75) 128,782.77

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