Finance Minister, P Chidambaram has said that Forex swaps are risky and the the markets had witnessed turbulence in last few months. Speaking at a press conference in Mumbai today, he said that there is no need for very complex financial products in India.

"I think the need for the product must be well established before the product is sold. There is no need to introduce in this country extremely complex and extremely risky products when that is not the preferred matter of either raising money or offering avenues to investors. We are still at a very early stage of development and therefore only such products which are justified by the requirements of the economy must be sold may be after 10 -15 years as the economy deepens, becomes stronger there is a place for very complex products."

On bond market, he said "We must remember always that the quality of the market is affected by the behaviour of the players to achieve corporate objectives, the perception of their risk and their culture of risk taking. I ask all of you to work with the government in expanding, broadening and deepening the corporate bond market."

He said that an investment of USD 500 billion is needed for infrastructure until 2012. He emphasised on corporate bonds, saying they will play a key role in the economy. "It’s really Pro Bono for the investor; it’s not Pro Bono for the issuer, so the issuer should really be carefully in offering products in the markets. But I think that is important that every instrument that comes on a market will be rated and investors must learn to make the best of such of it. I’m confident in that agencies like Crisil will through their Pro Bono and other measures will be supportive of the government in trying to open up and liberalize the financial markets."

The government is looking at introducing repos in the corporate bond market. He expressed concern over some large cap companies that have wanted to de-list.

A: Who am I to advice corporates what they should do. The point is I would like corporates to be listed on the stock market to raise money in the securities market.