Markets will remain buoyant - SEBI chief

By Our Special Correspondent

NEW DELHI, JAN. 28. The Chairman of the Securities and Exchange Board of India (SEBI), Mr. D. R. Mehta, today assured investors that stock markets across the country would continue to remain vibrant because of the cushion of margin money was nearly Rs. 7,500 crores against the average trading of Rs. 11,000 crores everyday.

Addressing a meeting organised by the PHD Chamber of Commerce and Industry here today, Mr. Mehta also expressed confidence that the 1992 stock market scam would not be repeated because of the effective enforcement of regulations. Mr. Mehta also felt that the Indian stock markets would emerge as the most advanced in the world and by the end of this year, as much as 95 per cent of the stock market transactions would be in the form of dematerialised shares. ``We have achieved this distinction in a short period and even the U.S. achieved this level of maturity in about 15 years time,'' the SEBI chief said. All the major stock markets were 100 per cent computerised, he added.

Referring to the inability of the new information technology ventures and knowledge industries to raise capital due the restrictions of three years dividend payment prior to entering the market, the SEBI chief said he would consider relaxing the rules.

Responding to the complaint of the PHD Chamber President, Mr. K. S. Mehta, said that even after the capital markets had attained buoyancy in the last 18 months, most of the Fortune 500 companies in the country were not taking advantage of the market, the SEBI chief said this was not because of any procedural problems. The SEBI did not take more than 21 days to clear pending applications, he pointed out.

At the same time, he said corporate houses should recognise the supremacy of investors and follow globally accepted standards of corporate governance which essentially revolved around `transparency and information.' The sooner the companies transformed, the better it would be for them to become competitive and successful in the global markets, he felt.

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Section  : Business
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