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FM updates FIIs on steps taken to boost economy

Last Updated: Thursday, November 1, 2012 - 22:00

New Delhi: Finance Minister P Chidambaram Thursday briefed the Foreign Institutional Investors (FIIs) about the current economic situation and the steps being taken by the government to boost growth.

"FII's met me and I updated them on where we see economy going and what steps we are taking," he told reporters after the meeting.

Among those who attended today's meeting were representatives from Bank of America Merrill Lynch, Blackrock, Goldman Sachs and private equity fund T Rowe Price.

The meeting assumes significance in the backdrop of the reform initiatives undertaken by the government to attract investment. Besides, the government is also trying to address the problem with the regard to implementation of General Anti-Avoidance Rules (GAAR).

In view of wide-spread concerns by foreign investors, the government had earlier postponed implementation of GAAR, which was introduced by the then Finance Minister Pranab Mukherjee in his Budget for 2012-13 to check tax evasion.

The government had appointed the Parthasarathi Shome headed committee to give its views on implementation of GAAR. The Committee in its draft report had suggested postponement of GAAR by three years till 2016-17 and abolition of capital gains tax on transfer of securities.

The final report of the Shome Committee is presently under consideration of the government.

Despite the concerns, FIIs have been net buyers and have invested over USD 18 billion so far in the current year.

Chidambaram after taking charge of the Finance Ministry on August 1 had initiated a host of reforms including relaxing foreign investment norms for retail, insurance and pension sectors.


First Published: Thursday, November 1, 2012 - 22:00
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