The Hindu Business Line : Chidambaram confident of taming inflation

TAKING STOCK: The Finance Minister, Mr P. Chidambaram, with the NSE Managing Director and CEO, Mr Ravi Narain, at the 2nd ANMI International Convention in Mumbai on Saturday. - Shashi Ashiwal

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Mumbai Feb.10 The Finance Minister, Mr P. Chidambaram, has expressed confidence in moderating inflation ruling at 6.58 per cent.

The economy was facing an unusual situation of high GDP growth, steep credit offtake and excess liquidity, said the Finance Minister, while speaking to mediapersons at the ANMI (Association of NSE Members of India) International Convention 2007 on Saturday.

"There is a need to proceed with a great deal of deliberation in moderating these factors," Mr Chidambaram said.

The Government had taken action on the fiscal side while the RBI was monitoring the money supply. There was no quick fix to the shortfall in production of agricultural commodities, he added.

The regulatory framework and legal issues pertaining to exchange traded market for corporate bonds would be announced shortly, said the Finance Minister.

Comprehensive amendments to the SEBI Act to strengthen regulation were being considered and a Bill would be passed soon. "We have proposed an investor protection fund," he added.

There was also the proposal to develop Mumbai as an international financial hub.

Mr Chidambaram pushed for a self-regulatory organisation for the security market to help in working out a well-designed regulatory disclosure regime. "Disclosure is an important part of regulation," he mentioned. The ANMI President, Mr Vijay Singhania, stressed the need for reduction of TDS for exchanges and the varying stamp duties levied by States.