Boost to NRI investments: This is expected to be a major area for investment flow. A minimum of Rs 500 crore can be expected to flow in from the 500-member strong NRI Investor Forum, says its chairman, KV Shamsudheen. This investment will come into small companies where the limits on NRI investments have already been breached owing to their small share capital.

This will give a boost to prices of companies with good earnings prospects and where the ceiling is yet to be breached. The depository hopes for a large share of the NRI investment coming through the demat route as a number of NRIs have opened investor accounts with the depository, says NSDL chief CB Bhave.

UTI's plans: UTI will try to raise $300 million through its New India Millennium Scheme for NRIs announced in thebudget. The dollar-denominated fund will be far more attractive than the NRI Fund which the Trust has just closed. The scheme will not come this financial year ending June 30 for UTI, but will follow shortly thereafter. The Trust also plans to raise infrastructure funds on the lines of its monthly income plans, the mobilisation of each could be up to Rs 1,000 crore.

UTI will also pitch for allowing provident funds to route their investment in private securities through UTI. Certain sectoral funds are also on the cards following the thrust to these sectors in the budget, says UTI chairman GP Gupta.

Statement on derivatives: NSE expects to get on with the task of kicking-off derivatives trading much faster, now that the finance minister has made an announcement that the government will make the necessary amendments to facilitate the introduction of the hedging mechanism. "This is the first time that the government at the highest level has come out with any statement on derivatives trading," says anemphatic NSE managing director RH Patil.

Corporatisation of broking cards

: The extension of exemption from capital gains tax to the broking community has been lauded. Although NSE members will not be affected, there are 170 brokers who could avail of this facility at the BSE. So far, 220 brokers have availed of this facility.

Stock-lending: Stock-lending, which is yet to take off, may get a boost from the move to exempt it from capital gains tax, although some feel that this exemption was always there. Nevertheless, this would mean a greater freedom to institutions to lend shares in the secondary market and thereby increase the floating stock.

Mutual funds: The funds industry hopes to attract more household savings now that the personal income tax rates have not been tinkered with. They are also expecting to get a portion of the pension fund corpus which has been allowed to invest in private securities.

FIIs: FIIs are not expected to rush in with investments post-budgetwhich is broadly seen by them as being pro-reform. They would prefer to wait till the instability in the region as a whole is cast off. Allowing FIIs into unlisted debt securities is not being seen as a major initiative as FIIs like liquidity which unlisted debt may not offer.

NSE managing director RH Patil however feels that infrastructure projects are first privately held and here a private placement could be made to FIIs.

These could be listed subsequently. FIIs have however welcomed the move to bring enhance the growth potential of Indian industry which will enhance the bottomline of these companies, which in turn would lead to FIIs investing more in the capital markets. KR Bharat of Credit Suisse First Boston says that not much impetus has been given to foreign investment and hence FIIs would have to wait for the Indo-Pak tussle to end before they pump in further money.