On SEBI''s move
What was announced by SEBI yesterday is parts of the series of steps that it have been taken to moderate the capital inflows into India. I was surprised to see one-two alarmist statements on the television yesterday and this morning. These statements are unfortunate; there is no place or need for any alarmist statements.

Investors through participatory notes are certainly welcome to invest in India; but for the present, it is important to moderate these capital flows. And therefore, SEBI has proposed a number of measures that will moderate these capital flows. If an investor, through the participatory note, wishes to register in India as an FII, he/she is most welcome to invest.

In fact the system itself is triggering mechanism and the systems that have been put in place by SEBI in the capital market have worked. And they will continue to work throughout the day and there is no reason for any alarm at all.

In fact, I would urge some of you to go back and do your homework, find out who is buying on the NSE and BSE - you will find that many leading FIIs are actually buying at the moment at the NSE and BSE; I don''t want to take names.

Therefore, let me assure all investors that what has been done is a step to moderate capital flows, which have become very copious and very abundant. This is the culmination of a long discussion among the RBI, the SEBI and the government.

The decisions that have been announced by SEBI are good decisions; good in the long-term interest of the investors, good for the capital market in India and all this will quieten down before the day''s out.

We are not in favour of planning participatory notes and we have not banned participatory notes. We have simply placed a cap on the proportion of money coming through participatory notes. We survey the overall assets under management or overall derivatives positions. This is intended to moderate the inflow of capital.

On market sentiment
Market sentiment is not a function of capital flow, inflows alone. The fundamentals of the Indian economy that were present yesterday evening have not changed this morning. The fundamentals are still sound. Companies are announcing Q2 profits and those profits are still very handsome profits.

Between yesterday evening and today, all that has happened is this SEBI has announced intention to moderate capital inflows. That''s a necessity step, it''s a good step; it''s a step in the interest of investors, it is the step in the interest of the capital market and the initial sense of alarm will quieten as the day progresses.

On strength of the rupee, inflation and stock prices
Our PE ratios are still far lower than the PE ratios say in China. At the moment, what we are trying to do is moderate capital inflows. And that is good.

Let me repeat that is good in the present context, it is good for everyone. And therefore I am sure that before the day is over, everybody will think coolly and things will quieten down.

I don''t know who is under watch and who is not under watch; all I know is even just as we are speaking, a large number of FIIs are buying in the market. That should tell you how trained skilled people are looking at the market.

Therefore, there is no reason for any panic or any sense of alarm and I would urge commentators to be careful in the remarks they make - there is no reason at all and no justifications at all to make any alarmist remarks.