Financial reforms must help Indian firms to obtain cheapest capital
The Dollar Business Bureau “Just as trade reforms has given Indian firms the ability to buy the cheapest goods available globally, financial reforms should give Indian firms the ability to obtain the cheapest capital available on a global scale,” said a committee report on foreign currency borrowings. The Committee constituted under the chairmanship of M S Sahoo, Secretary, lnstitute of Company Secretaries of lndia, to review the framework of access to domestic and overseas capital markets in its report said that if numerous firms, who undertake foreign currency borrowing, do not hedge their currency exposure, there is a possibility of correlated failure of these firms if there is a large exchange rate movement. The negative impact of this movement ...
