No FII complaints on CBDT circular: FM
23 May 2006
Finance minister P Chidambaram says that on a long-term basis, the India story is going strong. Commenting on the stock market crash, he said that over-leveraged traders came under margin pressures. Chidambaram feels that MFs and HNIs are using this as a buying opportunity, so are retailers.
CNBC-TV18 shares with domain-b its exclusive interview with the finance minister.
How concerned or worried are you about the state of the Indian capital market in the short-term since we have to sit in the global context or sell off as far as the emerging markets are concerned?
The markets all over Russia, China, Brazil, Indonesia have declined. India as an emerging market, is not an exception. The difference in India is that in the last few days, some people who have been over-leveraged have come under margin pressures.
I believe yesterday the Reserve Bank, the banks, SEBI and the exchanges have addressed that issue.
There is nothing to worry for genuine investors because they are invested for the long-term and the long-term India story continues to be that of solid growth. No one has doubted India's growth story. In the short-term, we are addressing the issue of over-leveraged buyers.
How are you addressing it as far as the future and option side of the market is concerned. That is where we saw the pain coming in, have you had a conversation with the regulator and what kind of systemic changes are possible or likely on that front?
I can't speak about systemic changes and I am told that SEBI has called a meeting of the exchanges today and they will address the issue. If they need my approval, they will make recommendations but in the immediate short-term what the over-leveraged buyer has to be given is margin money, liquidity and that is being provided.