(#)Indian Government

Stock exchanges are not like other businesses, they play an under-appreciated policy role in deciding the listing and compliance standards for companies that wish to go public. The Indian government owns 16 percent of the BSE 500 value that worth around 13, 44,000 crore.

This is probably equivalent to the value of India’s sovereign wealth fund i.e. investing in real and financial assets such as stocks, bonds or real estate. Because of such an enormous amount, government ownership is almost 3 times bigger than the fiscal deficit target set in the budget.

(#)Domestic Institutions

Domestic institutions, like erstwhile UTI, IDBI and LIC play a major role in affecting national economic policies; they undertake investment in securities and other financial assets of the country they are based in.

As of June 2014, the domestic mutual funds own 11 percent i.e. 9, 00,000 crore worth of shares. It is seen that very few people are interested in investing for mutual funds, if the mutual fund investors rise in India, the ownership of Indian companies will also show that change accordingly.

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