FinMin working with RBI, Sebi to ensure reforms, stability

The Finance Ministry today said it's working with RBI and Sebi to ensure reforms in the financial sector while ensuring stability.
Economic Affairs Secretary Shaktikanta Das today said in a tweet that RBI's move to liberalise external commercial borrowing (ECB) norms and Sebi's approval to a new set of revised norms for IPOs and listing of the bourses are "reform" measures.
"The Finance Ministry, RBI, Sebi working together with positive interaction and understanding. Will continue to work for reforms and stability," Das tweeted.
He also said Sebi decision to release discussion paper on guidelines for green bonds is "timely" and coincides with the ongoing climate change talks internationally. This, he said, "demonstrates India's commitment".

"A very satisfying day for reforms and our economy. Will continue to work harder with focus," he said.
To attract more overseas funds, RBI today liberalised the ECB norms, allowing companies to raise small value loans with average maturity of 3 years up to USD 50 million and expanded the list of overseas lenders to include sovereign wealth and pension fund.

(REOPENS DCM 38)
The government has notified the monetary policy committee under which the RBI will target inflation of 4 per cent with tolerance level of (+/-) 2 per cent for the period between August 5, 2016 and March 31, 2021.

"The government monitors the price situation on a regular basis as controlling inflation is a key priority and has taken a number of measures to control inflation especially food inflation," the ministry said.
During April-October period of the ongoing fiscal, trade deficit decreased to USD 53.2 billion from USD 78.2 billion a year ago.
"There has been significant market diversification in India's trade from Europe and America to Asia and Africa in recent years -- a process that has helped in coping up with the sluggish global demand," it added.
Current Account Deficit (CAD) narrowed down to USD 0.3 billion (0.1 per cent of GDP) in April-June of current fiscal, from USD 6.1 billion (1.2 per cent of GDP) in corresponding period of the previous year.

CAD had narrowed down to USD 22.2 billion (1.1 per cent of GDP) in 2015-16 as compared to USD 26.9 billion in 2014-15.
In the current fiscal 2016-17, foreign exchange reserves touched a high of USD 372 billion at end September 2016 and stood at USD 365.3 billion on November 25, 2016.
"Country's foreign exchange reserves are at a comfortable position to buffer any external shocks," it said.
In the current fiscal 2016-17 (April-November), the average monthly exchange rate of rupee was in the range of Rs 66-67 per US dollar.
India's external debt stock stood at USD 479.7 billion at end-June 2016, witnessing a decline of USD 5.4 billion (1.1 per cent) over the level at end-March 2016.

"All external debt indicators show that India's external debt has remained within manageable limits. India continues to be among the less vulnerable nations in terms of its key debt indicators," the ministry added.
The government, it said, has undertaken a number of policy measures including enhanced public investment, kick starting stalled projects, improving governance through systemic changes like open auction for natural resources, and improving business environment.
Further, the government has also liberalised and simplified the foreign direct investment (FDI) policy in the sectors like defence, railway infrastructure, construction and pharmaceuticals etc.