Surcharge removal to help improve liquidity flow: Nandita Parker, Karma Capital
The manner in which FM conducted the move was extraordinary; market sentiment should turn around.
You have been requesting the finance ministry for this and finally the ministry has responded to the feedback from FIIs and withdrawn the surcharge. What is your view?
It has been a huge effort on all our parts to impress upon the ministry of how important it was not to have these surcharges and the way and manner in which she has conducted this is extraordinary.
I do not think we have seen this kind of responsiveness in a long, long time. It is a very, very comprehensive package, not just for FPIs and also domestic high net worth investors and but also in terms of removing all these blockages in the system that have been really preventing liquidity from flowing into where it is needed.
There were three parts that were choking demand; one was sentiment which was ebbing ever since the budget came out and there was a huge negative wealth effect as a result of the FPI outflows.
The second was the liquidity choke points, which the Finance Minister has addressed very, very well. I think this is unprecedented and the country should take notice that the government really means business and they are doing everything that they can to be responsive to the needs of business.
It is very positive. The market will be enthused and the sentiment should turnaround. Yes, it is an exciting time!