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No problems in Indian stock markets: FinMin

Source: PTI
Last updated on: September 17, 2008 12:59 IST
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The Union finance ministry does not see any payment related problem in capital markets owing to the financial turmoil in the United States and other markets.

"As of now turbulence may have some impact on capital markets, but payment obligations are being met currently and there won't be any payment related problem," finance ministry sources said.

Also there is no definite and noticeable trend of pull out by foreign institutional investors (FIIs) from the capital market, sources said.

The Bombay Stock Exchange benchmark Sensex was down by 50 points to 13,469 at 1250 hrs.

The finance ministry sources further said that there is no precise trend which indicates that FIIs are withdrawing from the capital markets.

FIIs flows, sources said, are coming into the debt market, including government securities, even though there is slight pullout from equity segment.

Pointing out that there is a strong case for easing the External Commercial Borrowings (ECB) guidelines to help the corporate raise funds from overseas markets, sources said the move has nothing to do with the rupee value.

"ECB policy is independent of status of rupee. ECB relaxation will be based on credit requirements of productive sectors. We believe there is a strong case for easing ECB norms," sources said.

The Reserve Bank of India and finance ministry officials will meet at the month end to take a view on easing the norms for external borrowings.

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