The multi-year highs recorded by the Nifty and Sensex indices have fuelled optimism that retail investors will finally help to dispel gloom and reignite the nation's mutual fund industry.
Custodians will have more power in securing first-time foreign investment under the proposed Foreign Portfolio Investment regime in India, but are seeking a more defined role.
South African Sanlam's $111 million share purchase in an Indian firm has drawn attention to the appeal of the country's QFI scheme, offering foreign investors quicker time to market.
Buy-side traders ask India's securities watchdog to address market information leakage, with foreign firms citing concerns about being front-run by locals.
Despite unresolved issues over tax compliance, India has seen net foreign investor inflows return with a vengeance. Market players say several factors are behind the turnaround.
FII net inflows reached a record $5 billion just before the controversy over participatory notes.