Promising more reforms and to address issues of concern to the economy and the financial sector,Finance Minister P Chidambaram said Saturday that there is a need to re-energise the capital markets and bring investors into the market. The government is working to identify the steps that are needed to achieve this,Chidambaram said after meeting regulators and industry representatives on his first visit to Mumbai after returning as finance minister. Speaking to reporters at Sebi Bhawan where he held separate meetings with the Sebi board,mutual fund industry representatives and the four exchanges after meeting the RBI Governor,Chidambaram said the economic situation is still very challenging. The government is committed to a well regulated financial market,promoting investments,help channelise savings into financial instruments,in helping entrepreneurs raise capital and raise funds for implementing projects and that is the only way it is possible and that is the only way to growth, Chidambaram said. We have to rediscover the path that we have walked on two years ago and I think it can be done if we have confidence in ourselves and we follow the laws of economics. While the government has raised the price of diesel and limited the subsidy on LPG,Chidambaram said these steps will push inflation in the short term but the overall measures will bring prices down over time. The steps that we have taken will indeed cause a small rise in inflation but in a period of about 6-8 weeks and thereafter inflation will come down, Chidambaram said.
