"Government will do everything to strengthen SEBI", said the prime minister on 24th May. He was addressing the silver jubilee function of SEBI. Is that why he felt compelled to give this assurance? Sadly, government's actions speak otherwise. The former Chairman, C.R.Bhave was reportedly doing well and regulating the capital market efficiently. His term was not extended though he was eligible and a controversial person was appointed in his place.
The prime minister continued his homilies. "I would urge SEBI to ensure that good quality debt issuances are encouraged and a larger number of corporates access the debt market for financing." It is government's job to ensure the attractiveness of debt as a source of finance. What role can SEBI play in this?
Finance minister's observations at the same function were equally hilarious. "A large amount of money was flowing into India. In 2012, India received portfolio investment of $31 billion. Till mid-May this year, the FII investment is $17 billion. We need to maintain the momentum." Within a few minutes, he sang a different tune. Dealing with the possible impact of scaling down of stimulus by the American Federal Reserve, he quipped, "The money flowing into India is still modest. It is still a fraction of the overall liquidity that is being pumped into the system.I think there may not be a great impact on India. I don't see why we should not get what we are getting even if they withdraw from Quantitative Easing."
Unfortunately, economic developments do not respect ministerial double-talk.
The prime minister continued his homilies. "I would urge SEBI to ensure that good quality debt issuances are encouraged and a larger number of corporates access the debt market for financing." It is government's job to ensure the attractiveness of debt as a source of finance. What role can SEBI play in this?
Finance minister's observations at the same function were equally hilarious. "A large amount of money was flowing into India. In 2012, India received portfolio investment of $31 billion. Till mid-May this year, the FII investment is $17 billion. We need to maintain the momentum." Within a few minutes, he sang a different tune. Dealing with the possible impact of scaling down of stimulus by the American Federal Reserve, he quipped, "The money flowing into India is still modest. It is still a fraction of the overall liquidity that is being pumped into the system.I think there may not be a great impact on India. I don't see why we should not get what we are getting even if they withdraw from Quantitative Easing."
Unfortunately, economic developments do not respect ministerial double-talk.
