Are Govt moves a futile exercise?
Our Bureau Chennai, Oct. 24 The Government, in coordination with SEBI and Reserve Bank of India, has announced a slew of measures to calm market sentiment amid global turmoil and improve domestic liquidity. But it seems those measures turned out to be futile as the Sensex tumbled below the 9000-mark for the first time in three years. On September 16, the RBI came out with measures that include allowing banks to participate in foreign exchange market and also hiked the term deposit rates in Foreign Currency Non-Resident Deposit and Non-Resident External Account. On September 22, the Finance Ministry raised overseas borrowing caps for infrastructure companies for rupee expenditure from $100 million to $500 million. Borrowings in excess of $100 million must have a minimum average maturity of 7 years. PN story On October 6, SEBI lifted the October 2007 restrictions on issue of participatory notes (PNs) by foreign institutional investors (FIIs) to arrest the outflow of FII funds. FIIs were
