No curb on FII inflows as long as growth continues: Sebi

Amid diverse views expressed by the finance ministry and the Reserve Bank of India (RBI) on curbing FII inflows, the Securities and Exchange Board of India (Sebi) today exuded confidence that there would not be any reversal of foreign fund flows into equity markets as long as the Indian economy was on a strong wicket.

Foreign institutional investors have pumped in a record $21 billion so far this year.

“As long as India is on a growth path, I don’t think we should think of certain reversal. Certainly, there will be a slowdown because it will not be that we will see massive inflows every year. But, that is something the system learns to deal with as it grows,” Sebi Chairman C B Bhave told UTV Bloomberg news channel in an interview.

Bhave’s comments came on the heels of Finance Minister Pranab Mukherjee ruling out curbing FII inflows.

However, RBI Deputy Governor Subir Gokarn said the central bank could intervene in forex markets if capital surge led to disruptions.