The Hindu Business Line : `Free market system is the way forward'

CONFIDENT OF GROWTH: Mr P. Chidambaram, Finance Minister; Mr N. Sridhar, son of Chitra S. Narayanaswamy; and Mr P.R. Ramasubrahmaneya Rajha, Chairman, Ramco Group, at the centenary celebrations of Chitra S. Narayanaswamy, in Chennai on Sunday — Bijoy Ghosh

Chennai , March 26

The Government is stepping back to allow an independent, qualified, and trained market regulator, according to the Union Finance Minister, Mr P. Chidambaram. The free market system and a well-regulated market economy are the way forward, he said at a function.

"I am confident of a robust growth. We can, and have, the capacity for growth rate of eight per cent, and to mobilise vast resources for health care, education, and rural roads," he said while participating in the centenary celebrations of Chitra S. Narayanaswamy, founder of Chitra & Company, a Chennai-based broking firm.

Narayanaswamy was a former President of the Madras Stock Exchange and Chairman of the Seshasayee group of industries.

Markets are not perfect. Like Governments have failures, there can be market failures. Anomalous market system has pitfalls. However, between a Government and the market, "we believe the market has more efficiency in allocation of resources. It is shocking to see people indulging in bad practices," he said.

Mr Chidambaram described Narayanaswamy as a pillar of Tamil and Chennai society. Like Rajaji and many others, Narayanaswamy would have welcomed liberalisation as a measure to eradicate poverty in the country and bring economic growth for the country, Mr Chidambaram said.

Chennai, like other India cities, is missing people of Narayanaswamy's calibre. The city is also lacking in having an "establishment," a non-political body to highlight issues of interest to the society, and point out what is right or wrong.

The Deemed University-AICTE controversy and issues like the Common Entrance Test are a couple of examples. "I did not find an establishment voicing its opinion on the issues. Only individuals write to editors," he said.

Mr V. Ganesan, Past President of the MSE, said that in the early days, despite the exchange's poor transaction volume it was recognised for having people such as Narayanaswamy.

MSE was big for its members, not volumes. Narayanaswamy was one of the greatest stock-brokers in this part of the country, he added.

According to Mr B. Shivakumar, Chairman and Managing Director of Alpump Ltd, Narayanaswamy showed small companies that the stock exchange was one of the best ways to raise funds.

He also created awareness about the stock exchange and how it can help small investors.

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