SEBI favours closing down regional stock exchanges

Chennai, Aug 2 (UNI) Security Exchange Board of India (SEBI) Chairman M Damodaran today suggested reduction in number of regional stock exchanges in the country.

Addressing the national conclave on 'The Change Face of Financial Leadership' organised by Confederation of Indian Industries (CII) here, he said " those regional exchanges that do not have any business can be closed, because there is no economic model to take business forward. The number of exchanges in India should be reduced." Mr Damodaran said due to certain compliance norms, accountability, demand from shareholders and other factors, the companies were increasingly looking at becoming private than public.

"Ultimately they will realise that the benefits of being private is short term and being public more advantageous in the long run," he said.

Mr Damodaran said a committee had been formed by the SEBI to look into disclosures and accounting standards.

A National Institute of Securities Market would be set up outside Mumbai, in partnership with the private sector, to impart knowledge on the financial market on the lines of the Indian School of Business in Hyderabad, he added.

UNI