New Delhi, The Deputy Chairman of the Planning Commission, Mr Montek Singh Ahluwalia, has defended the recently proposed measures of the Government aimed at moderating the capital inflows, stating that these were in the right direction.
“Surges in capital flows are a global phenomenon. There are no simple solutions.
I think the actions they (the Finance Ministry, SEBI and the RBI) are taking are in right direction and aimed at moderating surges. No country has an ideal system to manage surges,” Mr Ahluwalia told reporters here on the sidelines of an industry event.
Stating that globally financial systems everywhere were under strain, Mr Ahluwalia said that the only way the Indian system would not come under strain was when one shuts it completely.
“I don’t think it is sensible to do that,” he added.
The Securities and Exchange Board of India (SEBI) had on Tuesday proposed curbs on issuance of participatory notes (PNs) by foreign institutional investors (FIIs).
The Finance Minister, Mr P. Chidambaram, has said that the main purpose of the proposed measures was to moderate capital inflows.
