Faced with a sliding rupee, the government on Tuesday assured foreign institutional investors (FIIs) that it is contemplating more steps soon to make investments in India more attractive, according to sources.
According to the sources, this assurance was given by Finance Minister P Chidambaram in a meeting with a few institutional investors.
After his meeting, he told reporters, "Everyone was here, everyone was bullish, there were no concerns."
The meeting took place amid the decline of rupee against the US dollar for the fifth day in a row.
(Read: Rupee falls for fifth day in a row)
The rupee finished at 63.71 against US dollar, down 47 paise or 0.73 per cent over Monday's close.
According to sources, the steps may include greater participation for FIIs in currency derivative market, easy conditions for collateral and modification in FEMA rules.
Most of the proposed measures would not require changes in legislation, they said. Foreign institutional investors may also be allowed to use domestic securities as collateral.
During the meeting, FIIs reportedly sought removal of short-term capital gains tax.
They were assured by the officials about the government's commitment on sticking to the targets of fiscal deficit and current account deficit.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
