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Since 1991, India has witnessed drastic changes and reforms in its economic policies with the goal of providing investment opportunities to private and foreign players. With the advent of globalization, India does not want to lag behind in the race of attracting foreign investment. Foreign Direct Investment (FDI) has become one of the important tools for the economic development of the country. It is agreed upon that the opportunity costs of maintaining foreign exchange reserves are indeed material and cannot be brushed aside, more so by developing countries.This book focus on the challenges faced by India regarding its foreign investment policies and role of financial market regulators as well as government while dealing with such encounters.