The Hindu Business Line : CalPERS registers with SEBI as FII

THE California Public Employees' Retirement System (CalPERS), one of the biggest pension funds in the US with assets of $166 billion, has finally made its entry into India.

The pension fund has been granted a registration in India as FII by market regulator SEBI on July 15. However, it was not known how much money it has invested in India since they were allowed to invest by SEBI.

The pension fund is known for expecting high standards for corporate governance from companies where it makes investments.

On April 19, the board of administration of CalPERS voted to add the Philippines, India and Peru to its list of permissible emerging equity markets.

One of the main reasons for including India in its investment destination was the country moving to T+2 rolling settlement and good corporate governance practices.

CalPERS has approximately invested $2 billion in the emerging markets.

Brokers said the entry of CalPERS in India shows strong faith of foreign investors in Indian markets.

"CalPERS is considered as a very conservative investors and if they decide to invest in India, it means India complies with best international practices" said a broker.

He said the entry of CalPERS in India when in India new government has come into place shows that foreign investors are optimistic about the government policies especially on the economic reforms.

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