Exchanges to be demutualised next year : Damodaran
Kochi, Dec 4 (UNI) SEBI Chairman M Damodaran today said the stock exchanges in the country would be demutualised in the coming year in a bid to root out malpractices in the brouses.
Delivering the commemorative lecture of the Fedbank Hormis Memorial Foundation here, Mr Damodaran said demutualisation would help in separating ownership and trading function and the malpratices which existed would be a 'thing of the past'.
He said the malpractices existed as ownership and trading were with the same set of individuals and demutualisation would help in protecting the interests of the common investors in the Indian stock market.
Mr Damodaran said the ownership patterns for exchanges post-demutualisation have been chalked out.
Mr Damodaran also expressed the hope that Indian Depository Reciepts (IDR) would be reality by next year.
He said through IDR foriegn companies outside the country can have visibility and listed in the Indian stock market.
To streamline raising of finance for the small and medium enterprises (SMEs) an exchange would be opened by next year, he said.
Reiterating the importance of orienting and protecting the common investors, SEBI Chairman said the new capital protection orientation products would help first time investors to enter the market through mutual fund.
He said the investors would not lose capital through these products if other conditions remained the same.
The gold exchange traded fund also facilitated the small investors to accumulate units over a period of time which can be traded to buy gold.
Giving importance to small investors he said Real Estate Mutual Fund would also help them to notionally own land.
He said the organisation was also settiing up Investor Protection Fund with the fines and penalties levied form listed comapnies.
Mr Damodaran said for the purpose the SEBI Act of 1992 would be amended.
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