FM reiterates need for SROs in capital market

Mumbai, Feb 10 (UNI) Union Finance Minister P Chidambaram today reiterated the need for the formation of SRO (Self Regulatory Organisations (S R O S) in the capital market sector.

Addressing the second annual convention of Association of NSE Members of India (A N M) here today, Mr Chidambaram said, ''Formation of SROs are essential to share the regulatory responsibility in the crucial sector.'' While inaugurating the new building of Securities and Exchange Board of India (SEBI) at Bandra-Kurla Complex here a few months back, the Finance Minister had underscored the need for SROs in the capital market.

Today, he expressed displeasure that there had been no move in this direction by the market. Hence, he asked the bodies like ANMI, NSE (National Stock Excjhange) and SEBI to make concerted efforts for the formation of SROs. He made it clear that the government may think of giving incentives to these bodies for the same.

Later, talking about the rising inflation, he said that the government was taking all ''fiscal'' steps to control rising prices.

However, he maintained that economic growth of the country will not be affected while taking these steps.

His statement on inflation assumes significance in light of the annual budget for the next financial year which is to be presented on the floor of Parliament later this month.

He said steps to moderate inflation needs to be taken without affecting the economic growth of the country. ''We are seeing an unusual growth demand combination,'' he said adding that the GDP is growing at a little over 9 per cent, year-on-year credit offtake is 30 per cent and money supply is growing at 21 per cent.

UNI