Prithvi Haldea of Prime Database said the announcements were only worthwhile for the foreign institutional investors as they are now allowed to invest up to 100 per cent of the funds in debt instruments.
This should help the already growing debt market and will encourage companies to raise debt than equity. This according to Haldea, will be of no help for the revival of the equity market.
The same refrain was echoed by the foreign institutional investors.
Sanjeev Mohta, Mumbai-based senior fund manager at James Capel B & K, said Chidambaram's announcements are inadequate to cheer up the capital market.
Regarding the extension of capital gains tax exemption to the mutual funds, financial analysts feel it would be of no consequence as the mutual funds are still to be accepted by the people.
