"To enable exporters, importers greater flexibility in their risk management, we will enhance the limit available to exporters to 50 per cent and allow a similar facility to importers to the extent of 25 per cent," the newly-appointed RBI governor Raghuram Rajan said in his first media address.
The Governor said the depth in financial market cannot be created by banning position taking, or mandating trading based only on well-defined legitimate' needs. "Money is fungible so such bans get subverted, but at some level, all investment is an act of faith and of risk taking," Rajan said.
He said it is better that investors take positions domestically and provide depth and profits to the country's economy than taking local markets to foreign shores. Rajan said the RBI along with the government and other regulators such as Sebi, would liberalise financial markets as well as restrictions on investment and position taking.