By IANS
New Delhi : India is not considering imposition of any more checks on capital inflows, which has been one of the main factors for the appreciating rupee, Minister of State for Finance Pawan Kumar Bansal said here Tuesday.
“There is no proposal for more checks on inflow of capital for the present,” Bansal informed the Indian parliament.
Market regulator Securities and Exchange Board of India (SEBI) last month put a curb on participatory notes – an investment instrument used by unregistered foreign investors to invest in Indian capital markets.
“SEBI and the exchanges have put in place systems and practices to promote a safe, transparent and efficient market and to protect market integrity,” Bansal added.
“A depreciation of the US dollar against major currencies and increased capital inflows have led to appreciation of the rupees vis-à-vis the US dollar,” the minister said.
“To the extent that Reserve Bank of India, with a view to reduce undue volatility, intervened in the foreign exchange market, such appreciation was moderated,” Bansal added.
He also said there is no direct relation between the levels of capital flows and inflation.