New scheme for stock borrowing/lending on the anvil: SEBI

Mysore, May 29 (UNI) SEBI Chairman M Damodaran today informed that a new scheme for stock borrowing and lending, based on the model being practised internationally, will be announced in the next three or four days.

Talking to newspersons here, he said that under the new scheme, settlements would be through shares instead of cash to safeguard the capital market from its uncertainties to a considerable extent.

Mr Damodaran disclosed that a state-of-the-art National Institute for Securities Market and Trading would be set up in another three years on the outskirts of Mumbai. Unlike other institutes offering diploma courses, it would train the candidates in the capital market to upgrade functioning, understand the market complexities and orient for training and research.

Earlier, speaking at an interactive session, organised by Rotary Midtown here, he said that in the backdrop of the recent stock market crash when sensex tumbled from 12,500 to 10,500 points, the new scheme would stablise the capital market in the country. An expert committee, with a renowned professor from Hyderabad as its Chairman, had been set up to suggest within a month the most appropriate practices to protect capital market on international pattern. SEBI was ready to bring in changes, based on the recommendations of the committee, in the system.

Mr Damodaran said a system of optional grading of initial public offerings (IPOs) was being planned by SEBI to get a better understanding of the risk factors associated with IPO. The system would be implemented by the year-end.

He inaugurated a Rotary Midtown Academy school here and gave a call to the teachers to guide the children to realise their dreams and enlighten them to pursue their skills.

''In pursuit of what we variously describe as modern education or western education or even 21st century education, let us not abandon the traditions of our country with their proven values and utility,'' he said.

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