Mr. D H Pai Panandikar, chief economist, RPG Foundation: "The full convertibility on current account was expected. It was also mentioned earlier. Nothing new in it. This would conform to Article VIII of the IMF. In practice, if one has to go abroad for education, medical purposes or tour, money would be easily available. No questions would be asked if money is remitted as gift to anyone outside India though there would be certain ceiling on the amount. In a way, it is more opening up of the economy to attract the foreign investment significantly."

Mr. A Raghuraman, secretary-general, Assocham: "The announcement is not a surprise. We have been asking for it for a long time. Even the timing is right. Now, what is let is the full convertibility on the capital account."

Mr. Ashok Kumar Agarwal: President, Delhi Stock Exchange "Certainly a positive news. It will have a good impact on the stock, through a psychological one, as it shows that the liberatlization policy is on.

Mr. Rattan Singhania vice-president, DSE: "This is an excellent step taken by the government. It will reinforce the confidence of the world in the Indian economy and its capabilities. This definitely boosts the sentiment of the stock market."

Mr. K K Bajaj, DSE member: "Last time when partial convertibility was done the export oriented units' share prices flatted up, this has come as a further boost. This was a long standing demand of the multinationals. Now they will be willing to bring in new technology.The NRIs will also bring more funds now. Most of the big companies are in to export and they determine the market movement so it is certainly a good sing."

Mr. Prakash C Lakhotia, a director on DSE board : "Since last budget we were waiting for this announcement. This is going to directly expose the exporters to the fluctuation of dollar

against rupee but at the same time it is boun to have an indirect impact on the stock market throughout the country. This step is directed towards a capital foreign investment and encourage investment."

Mr. Subodh Bharagava, president, Confederation of Indian Industries : "The CII welcomes government's decision to make the rupee fully convertible on current account. It enables the industry to have greater exposure to the world economy following the removal of restriction.'

Mr. J D Agarwal. Director, Indian Institute of Finance: " It is positive step in the light of foreign exchange reserves going up to $21.9 billion. The announcement of this intention in this year's budget had a salutary effect in the form of reduced havala transactions and stabilized rupee rate. This has proved those economists wrong who warned that foreign exchange reserves will deplete."

Mr. Ravinder P Seth, director, Elite Stock Management : " It is a step further towards globalisation. It's a promise fulfilled. It shows that the government is determined to press ahead with liberalisation. The step will boost the confidence of foreign investors, NRIs and Indian businessmen . It is a fitting reply to the recent Merrill Lynch report which expressed doubts about political stability of the Congress party. Now more foreign investment will come freely whether through FIIs or as foreign direct investment the confidence of foreigners is evident from the high tradability of Indian GDRs abroad. I am looking forward to a day when Indian will come fourth or fifth economic power of the world."

Mr. Rashid Jilani, Chairman, Punjab National Bank: " It is a measure of confidence that we have in ourselves and our economy. India has become a part of global economy by accepting Article VIII of the IMF. It will boost the confidence of the general public that we have reached a stage where we can stand as equals with the big players in the global economy."