Govt does not foresee payment crisis on bourses

Government does not see any payment crisis on stock exchanges following volatility caused by turmoil in the US financial market triggered by collapse of the investment banker Lehman Brothers and financial problems being faced by other large entities.     

"As of now, turbulence (in the US financial market) may have some impact on capital markets, but payment obligations are being met currently and there won't be any payment related problem," top finance ministry sources said.     

The sources said there is no definite trend noticeable about FIIs pulling out of capital markets following financial turbulence in the US.     

Investments from FIIs, the sources said, are flowing into debt markets, including government securities, even as there is slight pullout from equity segment.     

After the news of Lehman Brothers filing for bankruptcy came, FIIs net withdrew $212.30 million from equity markets on Monday and $156 million yesterday, according to Sebi figures.     

However, they net pumped $62.80 million in the debt market on Monday and $73.40 million yesterday.