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Mumbai, Oct. 6 SEBI’s move to remove restrictions on participatory notes will not have much of a stabilising impact on the depreciating rupee, said treasury officials.

Taking into account the global credit crunch, the removal of restrictions on participatory notes will not result in a large amount of FII inflows into India, said a treasury head with a public sector bank. The rupee will continue its downward movement as the huge demand for the dollar is not being met by adequate supply, the official added.

The rupee was around the 39.5-39.75 levels against the dollar in October last year, when the P-Notes restrictions on FIIs were first made. The rupee has been on a depreciating trend since April this year. It has depreciated by more than 17 per cent in this fiscal. The rupee closed at 47.81 against the greenback on Monday, a level last seen in 2003.

For the week ended September 26 this year, the total foreign exchange reserves were to the tune of $291.819 billion.

For the week ended October 12, 2007 forex reserves were to the tune of $256.686 billion.

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