How's Dalal Street reading RBI's report on convertibility?

CNBC-TV tried to gauge the mood at the Dalal Street by talking to two of its prominent experts viz; Deven Choksey of KR Choksey Securities, and Anand Tandon of Gryffon Investment Advisors.

Excerpts from CNBC-TV18's exclusive interview with Deven Choksey and Anand Tandon:

Q: What are the key takeaways here, what is your first impression?

Choksey: I think as the government is committed, they are moving in the right direction of making it full float. Possibly doing this in a phased manner is very good.

In my viewpoint, I think this is a demonstration of strength as far as the country is concerned. And this could probably have a long-term impact for investors, as they would have a good amount of confidence in the economy once the full float is established completely.

On the P-note side, if at all it gets implemented, I definitely think in the short term, this particular measure may slightly impact the market. But in my viewpoint, over a longer period of time, even this will get neutralized once the free float is established. 

Q: Do you think there is a misplaced fear about participatory notes?

Choksey: I don't think so, but the committee may have thought about it that participatory notes are being misused at this point of time for which they have recommended this particular measure.

In my opinion, at this point in time, there is no such kind of fear and one should keep this in the mind, because as far as the investment activities in the country are concerned, it is going on pretty safely and there is nothing, due to which one should get unduly worried, as far as the FII flows are concerned.

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