The Hindu Business Line : SEBI hopeful of decision soon on stock exchange for SMEs

The Chairman of the Securities Exchange Board of India, M. Damodaran (left), along with Mr. D. Balasundaram, President, Indian Chamber of Commerce and Industry, addressing a meeting in Coimbatore on Monday –

Our Bureau

Coimbatore, Aug. 28 The Securities and Exchange Board of India has called for a presentation on the proposed stock exchange for Small and Medium Enterprises (SMEs) by the institutions that had expressed a desire in this regard and an outcome is expected in the coming months.

SEBI is also in the process of establishing a training institute for the benefit of those who are engaged in various activities relating to the capital market.

Speaking at a meeting here, Mr M. Damodaran, SEBI Chairman, said the days of individuals or institutions directing the movements of the stock markets in the country were over and the market movement was dependent on corporate performances.

He said SEBI has constituted a committee to look at the entire structure of IPOs, focusing on speed, on the time taken and on the quality of disclosures, yet reducing the volume of documents the investors would have to go through.

He said SEBI was also encouraging companies that come for discussion with it to take advantage of the ‘e-IPO route’. But no company has so far adopted this process.

Tie up with law schools

He said SEBI had entered into a tie up with leading law schools in the country to make capital market education an optional subject for the fourth year students in the five-year course. The SEBI Chairman said his organisation was establishing‘a very ambitious training institute’, on the outskirts of Mumbai, to cater to the requirements of all the emerging markets. The institute would have six different schools offering courses starting from investor education to a Ph.D degree in capital markets. Almost everything has been tied upfor the project and it would be the first such project promoted by a regulator anywhere in the world. He said the core faculty of 60-65 per cent would be from India. Commenting on new mutual fund products, Mr Damodaran said the Indian market would match the best in the emerging markets worldwide, in terms of availability of products in the next two or three years.

Referring to the sub-prime crisis in the US, Mr Damodaran assured investors that the Indian markets were free from any direct impact of such problems. He said ‘no one person, no group of persons even if they are FIIs are big enough to bring down our market’. Mr D. Balasundaram, President, Indian Chamber of Commerce and Industry, Coimbatore , called for the abolition of stamp duty on securities.

He also advocated showing rupee value in quarterly results in a uniform way and standardisation in par value of public issues. He pointed out that said asking for an attachment of PAN card copy with IPO applications was a redundant exercise since shares could be credited only to a demat account that had a PAN number.

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