Indian markets well regulated: Chidambaram

November 14th, 2007 - 3:00 am ICT by admin  
“The point is that the market is well regulated. The job of the regulator is to ensure that the market is well-regulated market. In a well-regulated market, there will be periods of volatility. But, I think responsible and mature market players will accordingly adjust their activities in the market in order to reduce volatility,” Chidambaram said after the launch of Jet Airways’ Chennai-Brussels-Toronto flight.

He also said the government had also helped exporters to cope with the appreciation of the rupee by providing an export package of nearly 1.27 billion dollars to 1.39 billion dollars.

“Exports are still growing at about 18 or 19 percent a year. In the long run, exporters have to learn to live with a competitive exchange rate. What we are concerned about is the rapid appreciation of the rupee, and the government has responded. In fact, the government has acted very swiftly in giving them on three separate occasions, relief packages which altogether amounts to approximately 5,000, 5,500 crore,” he said.

Market regulator Securities and Exchange Board of India had curbed issuance of participatory notes used by unregistered investors to invest in Indian shares, saying it wanted flows to be transparent.

Earlier, the Minister had said, after the curbs were proposed, that India wanted to moderate inflows to avoid a stock market bubble.

Foreign capital has surged into India this year, attracted by rapid growth, pushing the rupee to its strongest against the dollar since 1998 and powering the stock market to record highs. (ANI)

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