Separate exchange for SMEs in 2008: Damodaran

Mumbai, Jan 31: A separate exchange for small and medium enterprises (SME) will become a reality within this year, Securities Exchange Board of India (SEBI) Chairman M Damodaran said today.

Speaking at the fifth annual conference on capital market, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), here, he said that an exchange for SME will be created in this calendar year. Mr Damodaran pointed out that the importance of SMEs was growing with the growth of the economy.

He said, ''A comprehensive regulation for all the market intermediaries is needed and all the regulatory gaps will be soon filled up.'' He also remarked that OTCI has failed to meet its objectives and, so, ''We need to look at the issue afresh.'' Mr Damodaran reiterated, what he had said a day earlier, that SEBI has approved the removal of initial issue expenses for close-end mutual funds and also decided to provide permanent registration of the intermediaries that would bring more transparency and better upfront disclosures to the investors.

There would be more rationalisation of fees related to mutual funds, which will be made less expensive for the retail investors, he added.

UNI