PM asks SEBI to ensure protection of capital market investors

Mumbai, Oct 6 (UNI) Prime Minister Manmohan Singh today asked the Securities and Exchange Board of India (SEBI) to ensure the protection of all the investors of the Indian capital market and hence he emphasised the need for investors education for this purpose.

Speaking after inaugurating 'SEBI Bhawan' here today, Mr Singh said, ''It is the task of the securities regulator to look after the interests of the investors in our country. If the regulator is able to ensure that the price of discovery process is efficient and transparent, with high disclosure and regulatory standards and sound liquidity and risk management, the concerns of individual investors will be adequately addressed.'' Protecting the interests of the investors is the prime responsibility of any capital market regulator. Those who part with their savings in search of relatively risk-free and reasonable returns, seek comfort in a regulatory regime which is responsive to their needs, he said.

''At the same time, we need to mount a massive effort to promote investor education and protection in a country as vast and varied as India. SEBI has been somewhat handicapped in its efforts at promoting investor education because of its lack of access to a suitable investor protection fund,'' he said.

Referring to the announcement made by Union Finance Minister P Chidambaram during his budget speech this year, the PM said an investor education fund was being set up with SEBI. This would be financed out of the fines and penalties to be levied.

Dr Singh expressed his happiness over the urgency being given to undertake a comprehensive amendment to the SEBI Act 1992 to create an appropriate fund as also to better address issues impacting investors interests.

Earlier, Finance Minister P Chidambaram said in order to groom the professionals in the capital market, it was important to have proper institutions for the same.

Maharashtra Chief Minister Vilasrao Deshmukh said the state government had already allotted the land at Panvel in Navi Mumbai to SEBI for setting up of an institute there.

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