‘We are trying to ward off a bubble’

‘We are trying to ward off a bubble’

The government has no plans to impose controls on capital flows, but a recent surge of funds into the country requires some measures to ward off a stock market bubble, finance minister Palaniappan Chidambaram said at functions in the US on Thursday.

Stock market regulator, the Securities and Exchange Board of India (Sebi), had on Tuesday proposed urgent curbs on the flow of foreign funds into shares through instruments known as participatory notes.

Chidambaram explained the motives behind the proposal while addressing an annual investor conference organized by ICICI Securities Ltd in New York and in a speech to students at his alma mater, Harvard University in Cambridge, Massachusetts.

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