Date:02/03/2005 URL: http://www.thehindubusinessline.com/2005/03/02/stories/2005030203080600.htm

Back `RBI gets more leeway on policy'

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THERE have been several positive proposals in the Budget with respect to the financial sector, according to Mr Deepak Parekh, Chairman, HDFC.

Allowing mutual funds to offer gold traded exchange funds is a positive move, especially with Indians so favourably inclined to investing in gold, Mr Parekh said.

"The RBI will have more freedom on monetary policy since the statutory limits on cash reserve ratio and statutory liquidity ratio are proposed to be removed."

The liquidity for securitised debt and mortgage-backed securities will improve with their proposed inclusion under SCRA, . he added.

Mr Srichand P. Hinduja, Chairman, Hinduja Group, said the financial sector reforms proposed like allowing banking companies to issue preference shares, permitting Gold Exchange Traded Funds with Gold as the underlying asset and revamping debt markets were steps in the right direction.