Seeking to assuage foreign investors, Economic Affairs Secretary S C Garg said Tuesday there is nothing new in the Sebi circular of April 10, which some experts are asserting could lead to outflow of USD 75 billion.
Garg asserted that Sebi last month extended the deadline of the circular until December and wondered that why there was much ado about the proposed guidelines.
Market regulator Sebi also said that it was "preposterous and highly irresponsible" to claim that USD 75 billion will move out of India because of the April 10 regulatory move.
Stock markets fell for the fifth straight session Tuesday on sustained capital outflows by foreign funds after an investor lobby group named AMRI flagged Monday the new Sebi KYC norms, if not amended, could lead to outflows of USD 75 billion from India, hurting the rupee and stocks.
Speaking with reporters here, Garg said, "April 10 circular has been put off to December. There is nothing in operation at the moment ... why there is so much ado."
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