New Delhi: Having stuck to its policy decision to boost the economy, the Centre is neither in mood to give tax rebate to promote share market nor has issued any directive to the Reserve Bank of India to check the fluctuation of rupee.

Sources said the government is finding ways to bring about reforms through the policy decision. That is why the Finance Ministry has changed its decision over giving some tax rebates. However, the ministry is losing much revenue.

But severe criticism over the halted economic reforms forced the Centre to make a policy decision to raise tax.

Fearing the possible global financial slowdown and European crisis the share market is slipping faster than expected.

The entire market is reeling under slowdown due to the weak Foreign Institutional Investment inflows.

The government wants to promote the market by allowing more Foreign Direct Investment (FDI) to the country. The volatile market has compounded the problem for promoters who have raised the funds by mortgaging their shares.

Jagannadham Thunuguntla of Smc Global Securities said, “The promoters, who have mortgaged their 50 percent shares will face more risks.” 

JPN/Bureau