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FM calls for meeting with RBI, SEBI chief

business Updated: Oct 29, 2008 14:35 IST
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Finance Minister P Chidambaram on Wednesday held a meeting with key regulators and policy makers, including plan panel Deputy Chairman Montek Singh Ahluwalia, on the current financial situation and to discuss further measures to tackle it.

The meeting, taking place at the North Block office of the Finance Minister, was attended by RBI Governor D Subbaro, SEBI Chairman C B Bhave, RBI Deputy Governor Rakesh Mohan and former RBI Governor C Rangarajan among others.

The meeting assumes significance in the backdrop of a slew of measures taken by RBI and government to inject liquidity into the cash-starved system.

Government and RBI have reiterated that further steps would be taken, if required, to stabilise the economy.

"RBI will continue to deploy both conventional and unconventional tools. We cannot rely only on conventional measures but we will have to adopt unconventional or unorthodox measures," Finance Minister had said on Friday, when the central bank announced mid-term review of credit policy.

The apex bank would infuse more liquidity, if necessary, he had said, adding that RBI would continue to use the Liquidity Adjustment Facility window with flexibility.

During this month, RBI has pumped in Rs 1,85,000 crore into the banking system.

At the same time, market regulator SEBI has allowed promoters to increase their holding in their companies up to 75 per cent through creeping acquisition route.

The measure is expected to boost market sentiment as promoters will be tempted to resort to creeping acquisition given the current depressed prices of their shares.