The Finance Minister P Chidambaram speaking to investors at an I-Sec conference in New York, said that a motivated rumour of PM resigning in the broker circles had brought the markets down. Speaking on the P-Notes issue, Chidambaram said that there was no intention to ban P-notes, but they do intend to slow down the flow of funds. SEBI will give a fair hearing before decision on P-Notes. He said that an overwhelming number of FIIs don't deal in P-Notes. KYC norms are unable to find out ultimate beneficiaries of P-Notes.

The FM added that SEBI may extend the 18-month period on P-Notes winding down.Those who want to invest in P-Notes can register as FIIs. He also mentioned that he will ask SEBI to find ways to make FII registration simpler and said that a final SEBI decision on P-Notes will clear all confusion.

The inflow of foreign funds is an area of concern and we have to keep exchange rates at competitive levels. We are not contemplating additional steps to control capital flows, the FM clarified.

Speaking on the market movements he said that there is a more than usual interest in India growth story and the movement of BSE, NSE over the last 1 year is comparable to most EMs. India is the second fastest growing economy in the world. On regulations, he said that India needs a well regulated capital market and India is amongst the best regulated markets in the world. India growth story is broad-based.