Lok Sabha Question No. 518 (UNSTARRED), answered on 2018-07-20
Subject: Sovereign Wealth Fund
Ministry: FINANCE
Asked by: POONAM  MAHAJAN

## MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFATRS

## LOK SABHA

## UNSTARRED QUESTION NO. 518

TO BE ANSWERED ON FRIDAY JULY 20,2018/ASHADHA 29/1940 (SAKA)

## SSOVEREIGN WEALTH FUND"

## 518: Smt: Poonam Mahajan MP

## Will the Minister of FINANCE be pleased to state:

- (a) 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 carried out in the country and the benefits accrued from the same; and being
- (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 MNNISTRY OF FNANCE

- a) & b) As on June 30, 2018 there are 24 countries whose Governments as Sovereign Wealth Funds (SWFs) under the  regulatory  framework  for Foreign Portfolio Investors   The list of the countries with their total assets under custody aS on June 30, 2018 is in Annexure 1. Section 12 (IA) of SEBI 1992 stipulates that no foreign institutional investor shall or sell or deal in securities except under and in accordance with the conditions ofa 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 [ 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 f equity shares of each,company by a single foreign portfolio investor or an investor group shall be below ten percent of the total 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: along Act; buy paid
2. 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.

## 2018/Ashadha 29/1940 (Saka) regarding "Sovereign Wealth Fuude

## List of the countries along with their total assets under custody aS on June 30, 2018

| Serial Number   | Country_Name             | Total AUC (NR Crore)   |
|-----------------|--------------------------|------------------------|
| 1               | SINGAPORE                | 1,16,058.86            |
| 2               | NORWAY                   | 68,865.70              |
|                 | UNITED ARAB EMIRATES     | 52,45358               |
|                 | KUWAIT                   | 28,728.10              |
|                 | CHA                      |                        |
|                 | MALAYSIA                 |                        |
|                 | MAURITIUS                | 14,094.88              |
| 9               | SAUDI ARABIA             | 12086.03               |
| 10              | AUSTRALIA                | 8,398.12               |
| 11              | SWEDEN                   | 6,273.09               |
| 12              | SOUTH KOREA              | 2,397.35               |
|                 | UNITED STATES OF AMERICA | 2273.44                |
| 14              | NETHERLANDS              | 1534.67                |
| 15              | OMAN                     | 977.88                 |
| 16              | NEW ZEALAND              | 963.20                 |
| 17              | UNITED KINGDOM           | 795.00                 |
| 18              |                          | 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           | Total                    | 3,95,973.68            |

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   |
|----------|----------------------|-----------|-----------|-----------|-----------|-----------|-------------|---------------|
|          | Singapore            | 4875.37   | 10,450.09 | (3712.06) |           | 229.03    | 2868.12     | 41,332.86     |
| 3        | Norway               | 937835    | 13,634.27 | 6605.16   | 2923.22   | (5169.22  | 5692.00     | 33,063.78     |
|          | Malaysia             | 5560.59   | 8209.37   | 7186.81   |           | (975.99   | 689.68      | 20,436.60     |
|          | China                |           |           | 2842.74   | 18,745.21 | (1263.83  | (1454.51    | 18,869.62     |
|          | 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       |
|          | Netherland           | 4286.18   | 893.96    | 276.88    | 366.58    |           | (45.75)     | 5535.78       |
| 8        | Kuwait               | 1101.18   | 931.40    | 1517.06   | 756.89    |           | (7189)      | 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)   | (56.517   | 208.01      | 786.14        |
| 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)        |
|          | Belgium              |           |           | (41.797   | (5.83)    |           |             | (152)         |
| 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)      |
|          | Korea                | 1555.62   | (328.09)  | (820.73)  |           | (457.82)  | 176.20      | (1774.46)     |
| 27       | Mauritius            | 0.06      | 0.78      | (36.45)   | 0.19      | (297.54)  |             | (2714.96)     |
| 28       | United Arab Emirates | 5060.19   | 833.27    | 1241.76   | 333.05    | (5668.26) | (15,778.35) | (13,9783      |
|          | Grand Total          | 33,333.02 | 35,883.47 | 19,123.40 | 52,358.89 | (8238.27) | (3677.75)   |               |