Govt. committed to a well-regulated financial market: Chidambaram

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Finance Minister P. Chidambaram on Saturday said the UPA government is committed to a well-regulated financial market and help entrepreneurs to raise capital to achieve higher growth.

Chidambaram, who met Reserve Bank of India ( RBI) Governor D. Subbarao and Deputy Governors, as well as officials at the Securities and Exchange Board of India (Sebi) here, told the media that Saturday's meeting has been fruitful.

"I listened very patiently to what they had to say. I have conveyed certain messages to them that the government is committed to a well-regulated financial market. The government is committed to promoting investment," said Chidambaram.

''The government is committed to helping channelising savings into financial instruments. And the government is committed to helping entrepreneurs to raise capital and raise funds by implementing projects,'' he said.

"That is the only way forward. That is the only way to growth. More savings, more investments, more investments in key areas like infrastructure and the production of vital goods and services. So, we have to rediscover the path that we had walked on until a few years ago. And I think that it can be done. It can be done if we have confidence in ourselves and we follow the laws of economics," he added.

Chidambaram, who was on his first visit to the financial capital after taking charge as the Finance Minister on August 1, also met the representatives of the mutual fund industry here to discuss measures to revive the Indian economy and increase investor interest.

"As far as the economic situation is concerned, they were quite supportive of the measures that we have taken so far. And they urged us to take more measures to address the fundamental constrains and concerns about the economy," he said.

Chidambaram also said the financial markets are the heart of the economy.

"In fact, the best signals of the state of the economy come from the financial markets. It is important that all our financial markets function very well and it's equally important that they are well regulated," he added.

Chidambaram said that there would be more reforms in the near future.

"Why you call it the second installment of reforms. I can count many installment of reforms, but there will be more. There will be more issues, which have to be addressed, and there will be more," he said

Chidambaram further said that he would also meet foreign institutional investors during his next visit to Mumbai.

Chidambaram was accompanied by senior Finance Ministry officials, including Economic Affairs Secretary Arvind Mayaram.

The Finance Minister's visit to Mumbai assumed significance in the backdrop of a series of big-ticket reforms announced by the Congress-led UPA government to revive the Indian economy.

The Central government came up with its second wave of big bang reforms earlier on Thursday, as the Cabinet cleared the introduction of foreign direct investment (FDI) in pension and increase in the FDI cap in insurance.

Chidambaram, who addressed a press conference in New Delhi on Thursday said that the cap on the FDI in pension would be linked to that in insurance.

The Finance Minister while explaining the decision taken by the government said that private companies would benefit from the amendments in the insurance bill, as they were not applicable on the public sector players.