Published: Sun, February 11, 2018
Markets | By Rosalie Gross

FM Jaitley hopeful of fiscal situation becoming comfortable in next financial year

FM Jaitley hopeful of fiscal situation becoming comfortable in next financial year

"So far neither globally nor in India have we felt that this bubble could lead to a very major problem".

Sharing their opinion on the current volatility in the market both Sebi chief Tyagi and RBI Governor Patel said they are cognisant of the volatility in Indian markets, expected to continue for some time due to global reasons, but there is no reason to worry. The chairman also said that small investors need not panic over market falls and that they were doing well to invest via However, he cautioned that it can't be as risk-free as deposits.

Finance Minister Arun Jaitley with MoS for Finance, Shiv Pratap Shukla and RBI Governor Urjit Patel during the Central Board Meeting of RBI, in New Delhi, on Saturday. "I can not see at this stage that there would be any slippages", he said.

The good thing about the recent equity prices spurt is that everyone part of the markets were talking about how the valuations were stretched and there was endogenously built risk aversion to this trend, Patel noted.

While the had managed to gain 330 points on Thursday, it had lost more than 2,200 points in the preceding seven trading sessions amid negative domestic and global cues.

"The government proposal to mandate listed firms to raise 25 per cent funds via corporate bonds is a good step", Tyagi told reporters here after its board meeting.

More news: Source code of iPhone leaked, confirms Apple

Speaking on crypto-currency, Tyagi said the finance minister has already made it clear that these are not legal tenders in India and a committee is already looking into the whole issue.

Arun Jaitley, who also met Sebi's board and top officials earlier today, said one of the factors that stood out from the capital market regulator's presentation is that there is an increased reliance on corporate bonds as far as credit is concerned.

"How to implement this and what impact it can have on farmers, commodity prices and export competitiveness, all these issues were discussed".

Asked about the rate transmission by the banks, Patel said one of the banks reduced its Marginal Cost of funds-based Lending Rate (MCLR) two days ago.

"Actually what happened was that transmission came late and I must admit that some of the transmission came after demonetisation because we had a financial intermediation taking place in the system", he said.

Like this: