"As far as exchanges are concerned, it has to be seen that those regional exchanges that do not have any business are able to bring their innings to a close, because there is no economic model to take business forward," he said while speaking at a "CII National Conclave on the Changing Face of Financial Leaders", in Chennai on Thursday.

He also said the number of exchanges in India should be reduced. Damodaran said companies were increasingly looking at becoming private than being public companies, because of compliance norms, accountability demanded from shareholders and such other factors.

The chairman of the regulatory body pointed out that such things were necessary to push companies further ahead. "Ultimately they will realise that the benefits of being private is short term and being public would be advantageous and be able to improve in the long run," he said.

Damodaran added that a committee had been formed by Sebi to look into disclosures and accounting standards. A National Institute of Securities Market was being set up outside Mumbai for literacy and higher education about the financial market on the lines of the Indian School of Business in Hyderabad, he said.

The project was coming up in partnership with the private sector, he added.