Swamy's caution on CAC

Chennai, Mar 20 (UNI) Welcoming Prime Minister Manmohan Singh's declared goal of ushering in capital account convertibility (CAC) of the rupee, Janata Party President Subramanian Swamy today advocated the need for caution as many East Asian economies had been ruined due to lack of safeguards on CAC.

In a release here, Dr Swamy said CAC should not be adopted without safeguards against ''hot money'' in stockmarket and banks.

He claimed ''hot money'' was pouring into India through the ''sinister device'' of participatory note (PN), accounting for 53 per cent of foreign investments in India and opined the SEBI must be empowered to monitor the instrument.

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