Wednesday, October 17, 2007

PNs can invest in India as FIIs: FM

Finance Minister P Chidambaram has issued a statement after the market tanked clarifying Sebi stand on P-Notes.

He said PNs are welcome to invest in India post-registration as FII.



Defending Sebi's move, Chidambaram said the move was part of steps to moderate capital inflows in India. "For the present, it is important to moderate capital flows via PNs. Sebi's step is in interest of investors and capital markets. Foreign inflows need to be moderated."



According to Chidambaram, the government is not in favour of banning PNs. "We have not banned them and have only placed a cap on the amount of money coming via PNs."



He said inflows are contributing to a steep rise in the rupee and markets.

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