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Tuesday, September 15, 1998

Sinha promises relief to revive sentiment 

AB Ravi  
Finance minister Yashwant Sinha, who has been on an `economy darshan' tour for the last four weeks, will shortly unveil a package of measures that is expected to bring back the small investor into the stock market and revive business confidence in the country.

Sinha was, however, tighlipped about the package details. He told a select band of journalists from Mumbai while attending a banquet dinner on Saturday--hosted by local industrialist Ramesh Baheti of the STI group--that the package, which will include sectoral relief, was being fine-tuned by his ministry. As part of the revival package, the government, he said, would place orders to buy commercial vehicles. He, however, dismissed the 10,000-vehicle figure reported in the press earlier.

To protect the domestic industry, ``the government will impose anti-dumping and safeguard duties,'' he said. Sinha also said that his government was open to the idea of a timebound protection to domestic industry.

When quizzed what his reading of the economy wasnow (after four weeks of touring), he said: ``The current problem in the country is a lack of enthusiasm among investors. Small investors have deserted the market.'' But the silver lining, he said, was ``there is money, there is savings, there are projects, but what is lacking is confidence among investors. They have lots of money. But that money is not coming in to the stock market. It has found its way into other avenues like fixed deposits, bank deposits.''

To solve the problem, the government has asked the Reserve Bank and Sebi to adopt the Shankar Acharya Committee report. The long and the short of the report is that Sebi should ensure that there is transparency in new issues.

``Towards reviving investors' confidence, we are immediately going with PSU disinvestments. This will bring confidence among small investors,'' Sinha said.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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