No knee-jerk reaction to SIT proposals on P-Notes: FM

The government on Monday moved to calm jittery investors, promising that there will be no "knee-jerk" reaction to recommendations by the Special Investigation Team (SIT) on investments through participatory notes (P-Notes). 

As the stock market and rupee displayed signs of nervousness when markets opened on Monday, partly due to concerns over the possible action on P-Notes, the government moved swiftly to contain the damage. Finance minister Arun Jaitley held a hurriedly held news conference to assure investors that the government will take a considered view on the issue Stock Market Trading Tips

"It is too early to say what view the government would take. But, it will certainly not take any such action in a knee-jerk reaction, particularly one which has any adverse impact on investment environment," Jaitley told reporters in his Parliament House Office.

"The government will apply its mind in due course, keeping in mind the investment environment of the country as also the objective behind the SIT recommendations and then take a final view on the matter," the FM said Himanshu Tiwari Astrologer

Revenue secretary Shaktikanta Das also urged calm and said the government will take a final view after discussions with Sebi, the RBI and other financial market players. "At the moment there is no need to panic. There is no need for the market to rush to any conclusion and pre-judge the issue." 

The SIT in its third report had recommended tighter controls over P-Notes and had said the stock market regulator should come up with regulations on the final beneficial owner of such instruments. P-Notes are derivative instruments issued by foreign institutional investors (FIIs) to overseas investors, whose identity is often not known Financial Astrology

"It is clear that obtaining information on "beneficial ownership" of P-Notes is of crucial importance to prevent their misuse. Sebi needs to examine the issue raised above and come up with regulations where the "final beneficial owners" of P-Notes/ODIs are known," SIT had said. 

The government is keen to sustain the positive investor sentiment and is keen to ensure that the mood is not soured due to any policy uncertainty Personal Numerology

Times View 

The concerns of the Special Investigation Team on black money over participatory notes echo those articulated by several panels in the past but the government and the Securities and Exchange Board of India have only partly managed to address the worries. On several occasions, the finance ministry and the market regulator have had to defer decisions due to pressure from FIIs, which have resorted to widespread selling, resulting in a sharp fall in stock market indices. The bottomline is that this investment avenue needs to be made more transparent even if it means a temporary slump in the market Indian stock market astrology prediction