Govt open to hear FPIs concerns; to take steps on economy after meeting industry stakeholders this week

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Updated: Aug 05, 2019 4:17 PM

Even as the FPI pullout from the domestic markets continues, Finance Minister Nirmala Sitharaman on Monday said that the government is open to hearing concerns of the foreign portfolio investors.

Finance minister Nirmala Sitharaman, tax on rich, high tax, Budget 2019, Sitharaman, BJP top leadership, Indira Gandhi, bank nationalisation, abolished privy purses, RTI Act, triple talaq Bill, Rajya Sabha, general secretary Bhupendra Yadav, Amit Shah right hand manThe FPIs are on a selling spree largely after announcement of higher tax on FPIs registered as trusts and association of persons in the last budget.

Even as the FPI pull out from the domestic markets continues, Finance Minister Nirmala Sitharaman on Monday said that the government is open to hearing concerns of the foreign portfolio investors. “(I) Want to make it absolutely clear that I am open to hearing out FPIs,” Nirmala Sitharaman said after holding a meeting with the chiefs of public sector banks (PSBs). The Economic Affairs Secretary will be directly meeting the FPIs soon, she also said. The FPIs are on a selling spree largely after announcement of higher tax on FPIs registered as trusts and association of persons in the last budget. The FPIs pulled out Rs 2,632.58 crore from equities and Rs 248.52 crore from the debt segment during the first two trading sessions of August, according to the latest data. During July 1-31, Rs 2,985.88 crore was withdrawn by the FPIs from the capital markets.

Earlier today, the Finance Minister met the chiefs of the PSBs to take stock of their financial health. She said that tax collections were discussed with the public sector lenders and the  ministry is observing and collecting data sector wise. The ministry is also consulting other ministries, she added. The Department of Financial Services Secretary Rajiv Kumar said that the ministry will compile suggestions from bankers of both private and public sector banks. The ministry will conduct a series of meetings with the sectors which need a push and also to improve the health of the economy.

Finance Minister Nirmala Sitharaman is scheduled to meet industry on August 8 and will interact with the financial markets stakeholders on August 9. A meeting will be held with homebuyers and real estate stakeholders on August 11.

Overseas sovereign bond

On issuance of overseas sovereign bonds, the Finance Minister said that not much work has been done on the same after the announcement was made in the budget. No speculation can be made on the quantum tranche of sovereign bonds, she added.

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