South Asian Journal of Management

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The Emergence of SWFs and Its Implications to Global Financial System:A Case Study of India


Affiliations
1 Department of Management Studies, Invertis University, Bareilly, India
2 Department of Management Studies, Uttarakhand Open University, Haldwani, India
     

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This paper focuses on a major global phenomenon: the rise of Sovereign Wealth Funds (SWFs) and its implications to global financial system. It also investigates the perspectives of a developing country like India for setting up SWF in the ever changing global economic environment. The paper finds out that SWFs has appeared as a vital source of liquidity for the international financial markets and they also play a vital role vis-a-vis the other players such as mutual funds, hedge funds and private equity. SWFs are the important investors in the leading global financial companies but they pose a serious challenge to global financial markets due to their non-transparent nature of investment. The paper concludes that India should not go for setting up of SWFs as the nature of the capital flows in India is very volatile and it poses a serious challenge to the economy in case of capital flight from the domestic market, a phenomenon it has experienced earlier.
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  • The Emergence of SWFs and Its Implications to Global Financial System:A Case Study of India

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Authors

Surendar Singh
Department of Management Studies, Invertis University, Bareilly, India
R. C. Mishra
Department of Management Studies, Uttarakhand Open University, Haldwani, India

Abstract


This paper focuses on a major global phenomenon: the rise of Sovereign Wealth Funds (SWFs) and its implications to global financial system. It also investigates the perspectives of a developing country like India for setting up SWF in the ever changing global economic environment. The paper finds out that SWFs has appeared as a vital source of liquidity for the international financial markets and they also play a vital role vis-a-vis the other players such as mutual funds, hedge funds and private equity. SWFs are the important investors in the leading global financial companies but they pose a serious challenge to global financial markets due to their non-transparent nature of investment. The paper concludes that India should not go for setting up of SWFs as the nature of the capital flows in India is very volatile and it poses a serious challenge to the economy in case of capital flight from the domestic market, a phenomenon it has experienced earlier.