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Chidambaram: Not too far away.

Raghav: Lahiri committee on the FIIs that was expected as one rabbit that you could pull out of hat as a sort of bold reform measure but you didn’t even mention it?

Chidambaram: Sorry, Lahiri committee was a committee to instruct the mind of the government. We have liberalised the FII investment in government securities, we have liberalised FII in corporate bonds. There is dissent note on the phasing out of the participatory note. As long as I don’t take a decision, the status quo continues.

Lahari committee is not something that I have to stand and announce that. Rather it is something, which is a guide to me to make the changes as we go along.

Raghav: Are you largely in sync with those recommendations?

Chidambaram: I have said that we will go with majority views of the Lahari committee report.

Raghav: Do you expect them to come over the next 6-8 months?

Chidambaram: They will come one by one. In fact, we have already brought in a few.

Raghav: But the big one of FII being treated different from FDI and sectoral caps only being applicable to FDI?

Chidambaram: I take a slightly different view there. Today once we set the cap like in Telecom, we have said there FIIs and FDI is fungible. The cap applied is taken together. The Lahari Committee has recommended treating FDI cap and FII cap separately.

Raghav: Because the two moneys are different?

Chidambaram: Not quite. I have spoken to a number of investors. The FDI chap has also got an FII arm.

Raghav: But as long as you don’t act in concert?

Chidambaram: This is all make belief. There is no Chinese wall between FDI and FII. Take GE, its got an FDI arm, it has an FII arm. Virtually every company has got that.

Raghav: Are you then saying it is not going to happen?

Chidambaram: The downside is, if I make two caps then in many cases I have to bring down the FDI cap in order to accommodate within 100.

Raghav: Below 100?

Chidambaram: It has to.

Raghav: But that’s all right?

Chidambaram: Then what’s the point? Then you send a different signal to the world that we have reduced the FDI cap.

Raghav: That communication can be made.