(a) whether the crisis in financial market in US has adversely affected financial markets
in India;
(b) if so. the details thereof;
(c) whether the Government is contemplating to take suiable measures in this regard;and
(d) if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) and (b): Recent developments in the international financial market have not had any
significant impact on the Indian financial markets. Conditions in the money and the Government
securities markets remained orderly. Tie credit market also continued to function normally.
There was some decline in net FL investments in the equity markets. However, this decline was
lower than that in several advanced and other emerging markets. The equity markets have since
recovered on the back of support by FIIs after mid-August, 2007.
(c) and (d): It is the endeavour of the authorities to maintain orderly conditions in the
financial markets. There are processes and tools in place to deal with developments and to
address any systemic concerns, including payment and settlement issues. Reserve Bank of India
has put in place a mechanism to closely monitoi the current volatility in the global financial
markets and its impact on Indian financial market. Its current focus is on appropriate response
if and when necessary to evolving developments in the various segments of the financial market.