Indian central bank has reiterated its earlier stance of a complete ban on P-notes – the bubble in Sensex from P-notes is transparent –SEBI acts slowly with caution
Babu Ghanta
Oct. 25, 2007

Reserve Bank of India has reiterated its earlier stance of a complete ban on P-notes. Although SEBI under the recommendations from Indian Finance Minister Chidambaram is acting slowly to make sure inflow of foreign funds in the country is not damped, Indian Central Bank is sending chilling warning signal.

The P-notes can eventually cause a total meltdown of the Indian financial system on the long run.

Reserve Bank of India (RBI) believes SEBI and Indian Finance Ministry will not curb the inflow of funds through tight monitoring of P-notes. It has suggested including two key conditions for issuance of P-notes by FIIs.

RBI recommends restricting P-note investments in sensitive sectors such as real estate and financial services. It also recommends imposing a lock-in period for liquidating investments made under P-notes.

Right now the western FIIs are using the Indian stock markets as gambling pits with the help of P-notes. That are doing what they are not allowed to do in their own countries. Indian Finance Ministry is hungry for the dollars and euros. But in reality the bubble in the stock market can eventually cause a major depression in Indian economy causing massive unemployment and economic disaster in India.

Indian central bank has reiterated its earlier stance of a complete ban on P-notes – the bubble in Sensex from P-notes is transparent –SEBI acts slowly with caution
Babu Ghanta
Right now the western FIIs are using the Indian stock markets as gambling pits with the help of P-notes. That are doing what they are not allowed to do in their own countries.
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