Dissent On Investments In Overseas Markets

This seems to be the only issue on which any of the committee members had conflicting views. Committee sources told Business Standard that since there was total unanimity on the remaining issues, the secretariat decided against appending a dissent note as is the tradition. Instead, the dissenting members views were incorporated in the main report.

While A V Rajwade is not in favour of permitting financial outflows by resident individuals, resident corporates and non-resident individuals out of their non-repatriable assets until the preconditions set for the first phase of CAC are met, the views of S S Bhalla are to the contrary. Bhalla holds that the macro-economic situation is exceptionally strong and large capital inflows are likely to continue. Better macro and exchange rate management would be facilitated if individual residents were allowed outflows with significantly larger limits, says Bhalla.