1. The government removed barrier of foreign direct investment (FDI) in Indian industries. The government also increased the limit of FDI which was quite low before. Moreover, to attract foreign investors and businessmen, various economic and non-economic incentives and exemptions are being given.
2. To attract more foreign investments in Indian equity market, the procedure of purchase and sale of shares have been made completely transparent by taking various steps.
Dematerialization (DEMAT) service has been introduced to convert the physical shares in electronic form. Due to this the purchase and sale of shares and the transactions of money involved therein became more transparent. The procedure of trading has been developed as per international norms.
