Mumbai, June 15: India's financial regulators met in Hyderabad on Thursday to discuss global economic developments, including the Eurozone crisis and its possible impact in India with attention focussed on the fallout of the crucial Greece elections this Sunday.
At the meeting of the sub-committee of the Financial Stability Development Council (FSDC), officials from the Reserve Bank of India, Sebi as well as the insurance and pension regulators discussed the ramifications of various scenarios that were expected to play out in Europe.
The regulators kept their cards close to their chest.
Reserve Bank of India (RBI) deputy governor K.C. Chakrabarty had recently said the central bank had drawn up contingency plans to deal with any crisis that might be precipitated by Greece's exit from the Eurozone.
"Globally, Greek elections are to be held on Sunday and the results, which may be known by Monday morning, will have an important bearing on the market. A win for Syriza party may heighten concerns about Greece's exit from the Eurozone, which in turn, can have an impact on the other major Eurozone countries. A hung Parliament in Greece will only prolong the uncertainty and will be negative for the markets," said Dipen Shah, head of fundamental research at Kotak Securities.
At the meeting, the sub-committee also discussed the concerns arising from the quantum of gold imports and its impact on the country's widening current account deficit, which is estimated at 4 per cent of GDP.