Government likely to widen scope of participatory notes: CNBC

There are reports that suggest that the government may have rejected the Tarapore Committee's recommendations in its Capital Account Convertibility report, reports CNBC-TV18.

The government is likely to stick to the recommendations of the Ashok Lahiri Committee and widen the scope of participatory notes.

A day after releasing the expert panel report on fuller convertibility on the capital account, RBI Governor, Y V Reddy on Saturday said that the report was a mere suggestion and Reserve Bank of India would consult the government and take its view in the next few weeks.

"Each one of the recommendations specifically made for the year 2006-2007 will have to be looked at carefully in the next few weeks. With appropriate consultations with the government, we may be in a position to take a view as to what can be done straightaway or what can be done in a modified form. But a view will have to be taken because they relate to the year 2006 - 2007," said YV Reddy, Governor, RBI.