Mumbai: India should open its financial sector for Foreign Institutional Investors (FIIs) and global majors, including brokerage firms, mutual funds and insurance companies, enabling the country to become a financial powerhouse, according to Union Finance Minister P Chidambaram.

"I am of the opinion that entry of global players would help the country in replicating the successes achieved by trade and industry," the Finance Minister said at a function to celebrate the 10th anniversary of National Stock Exchange (NSE) in Mumbai today (Oct 29, 2004).

"Of course, there would be a limit for the percentage of investments global companies can make in India, but there would be no barriers for competition," he said adding, competition would be good for existing Indian companies, as this would result in "a marked increase in their services."

Chidambaram also said that Indian financial sector should be fair, open, transparent and with highest efficiency to make it the best in the world.

"The financial markets are too good to be ignored and market is the medium for a common man to convert his savings into investments," he said. A scam would make investors run away from the market and to build trust and confidence, it might take many, many years, he said.

"All market players should bear in mind that if you damage the market, you damage the economy", he said.

India can be a back office for securities operations for the world, and outsource market related work in the country, Chidambaram opined.