Coop societies to enter stock market, MF biz soon

Bangalore, Jan 13 (UNI) Karnataka State Souharda Federal Cooperative Limited (KSSFCL), an umbrella organisation of over 800 Credit Cooperative Societies established under the new State Cooperative Act, has taken the initiative to float a new company to introduce stock market and mutual funds business to its affiliated societies.

Speaking at the promoters meeting of over 200 Souharda Cooperative Societies here today, KSSFCL President and BJP Legislator Manohar Maski said the KSSFCL had sought licence from RBI and SEBI to enter the share and stock market businesses. The cooperative societies, so far functioning only as institutions to collect deposits and lend money to the needy, could transform into financial service providers.

He said that with the influence of increasing liberalisation and globalisation, people's saving habits have changed and cooperative institutions at the grassroots level should be opened up to offer financial services to meet the aspirations of the common man living in rural areas. The cooperative societies operating in rural areas need not invest more money to offer new financial services as the proposed company would help these institutions by providing necessary training and upgrading the available infrastructure.

He said the State Government had decided to permit cooperative societies to sell stamp papers through electronic franking machines.

The State Government was expected to announce this in the coming budget proposal, he added.

UNI