The Hindu Business Line : Long-dated stock futures may hit markets soon

Chennai, Jan. 5 Indian stock exchanges are expected to introduce long-dated future contracts soon, the Chairman of Securities and Exchange Board of India, Mr M. Damodaran, told journalists here on Saturday.

It may be remembered that in November, SEBI had put forth as suggestions seven derivative products that could be introduced in the Indian stock exchanges, based on the recommendations of a committee on derivatives.

The first of the suggested products — mini contracts on index futures — has already hit the market. The next could be long-dated futures. This could come in the next ten days, Mr Damodaran said. He was here to deliver the inaugural address at a Symposium on Corporate Governance, organised here by the Institute of Chartered Accountants of India.

Answering a question, he said that the Justice Wadhwa committee, that was mandated to look into how to give back to investors the money disgorged from those who illegally benefited from the ‘IPO scam’, submitted its report about ten days ago. Mr Damodaran refused to divulge the contents of the report, saying that it was “internal”.

Answering another question, he said that there was “no conclusive evidence” that terrorists’ funds were sloshing around in the Indian stock markets.

Compensation

Earlier, speaking at the symposium, Mr Damodaran said that the issue of how much remuneration independent directors of a company should receive had attracted the attention of SEBI.

He was responding to a set of issues relating to independent directors, put forth by Mr S. Santhanakrishnan, Chairman of Corporate Governance Committee of ICAI.

Noting that too small a remuneration would not get enough talent to boards, while high levels of compensation would impact on the director’s independence, Mr Damodaran said that it was impossible to reduce the issue to numbers.

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Long-dated stock futures may hit markets soon