The Hindu Business Line : Chidambaram meets market players to allay fears

The Finance Minister, Mr P. Chidambaram, with the SEBI Chairman, Mr G.N. Bajpai, at a meeting with SEBI officials in Mumbai on Wednesday. — Shashi Ashiwal

Mumbai , June 2

THE Finance Minister, Mr P. Chidambaram, today assured critical sections of the financial world that the new Government was committed to economic reform and was aiming a 7-8 per cent growth in GDP.

"I am here to tell key economic players that this Government has reaffirmed its commitment to reforms. My meetings with brokers and bankers have been useful. Tomorrow I will be meeting foreign institutional investors, heads of Indian industries, and the heads of RBI, LIC, GIC and UTI," Mr Chidambaram said.

The Minister said he was holding a series of meetings with sections of business and industry "as an ongoing consultation process before the Budget". He was speaking to newspersons after meeting top officials of domestic broking firms along with officials of SEBI, stock exchanges and NSDL. He also met top bankers later. "I would also be meeting four large industrial groups in Delhi," he said.

The Minister said this Government would aim for a 7-8 per cent GDP growth within the overarching framework of the Common Minimum Programme over the next five years.

Earlier, stock brokers suggested measures such as reintroducing Automatic Lending and Borrowing Mechanism (ALMB) to impart liquidity to the stock market to the Minister. They also suggested forming a Government-sponsored capital market stabilisation fund to provide a cushion in times of extreme volatility.

"Market stabilisation fund helps in reducing volatility in the market. These kinds of funds are there in various countries," said Mr Motilal Oswal, Chairman, Motilal Oswal Securities.

Mr Chidambaram will meet the RBI Governor, Dr Y.V. Reddy, and the heads of LIC, GIC and UTI on Thursday.

More Stories on : Economy | Financial Markets | Politics

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
GMR forms consortium with Fraport, IDF to bid for airports revamp

Chidambaram meets market players to allay fears

Excise hike on ATF, duty cut on LPG, kerosene mooted

Honda Motor renews partnership with Hero — Model Committee to help minimise cannibalisation

Index heavyweights prop up market

FDI capped at 49 pc for airports' revamp

Change in IFCI-PNB merger plan ruled out