Need for level playing field in markets: Finance Secretary

New Delhi, Mar 29 (UNI) Finance Secretary D Subbarao today said recent developments in the financial sector had blurred the distinction between private and public sector and there was need to provide a level playing field.

Inaugurating a national seminar here on Proposed Amendments to Securities Contracts (Regulation) Rules, 1957, he said the role of capital markets in India was much more important than other emerging economies. However, capital market reform is a continuing process.

Efficiency of the capital markets depended upon their transmitting price signals across a deep and mature market.

''If we believe in the market, there is need to provide a level playing field,'' he said.

On SCRA, Dr Subbarao said some of its provisions were legacy provisions framed at different time. At present developments in financial engineering had blurred the distinction between private and public.

He called for an open, intelligent and transparent debate on the issue and noted the important role played by educational institutions like ICSI.

Hero Corporate Services Ltd Chairman Sunil Kant Munjal delivering the keynote address said India as a nation had significantly increased its savings rate from 10 to 18 per cent to more than 30 per cent at present. The challenge was how to channelise the savings to a constructive creative nation building.

Speaking on the existing system of delisting of securities, he observed that the existing system did not allow companies to exit peacefully and suggested the need for an efficient system to provide a simple and quick exit route to inefficient companies.

Earlier, ICSI President Keyoor Bakshi in his welcome address observed that Company Secretaries would ''professionalise, stabilise and galvanise'' the functioning and regulation of the capital markets and the corporate sector for the benefit of the investor and the society.

Capital markets have to be made efficient, functional and all-pervasive in order that economic progress continue unhindered, he opined, adding that the capital markets should be in constant state of reform which must be widespread from the grass root level to the macro economy level.

UNI SD MP KP1836