Securities and Exchange Board of India on Tuesday said it would introduce Indian depository receipts (on the lines of American Depository Receipts or Global Depository Receipts) this year to allow Indian markets offer variety of products to the potential issuers, besides announcing a slew of measures to make the capital market more transparent.
Speaking to reporters at the sidelines of a seminar on capital markets organised by Bengal Chamber of Commerce and Industry in Kolkata, Sebi chairman M Damodaran said the regulator had revisited the IDR issue and had interactions with potential issuers both in the neighbourhood and developed countries who were interested to bring their issues in the Indian market soon after this was facilitated.
Damodaran said several big companies in the developed countries, which had sought certain modifications in relation to size of the issue of IDRs, were ready to come to the Indian market soon.
Besides IDRs, Sebi would also introduce convertibles in the Indian markets.
Damodaran said Sebi was in active dialogue with major stock exchanges like Bombay Stock Exchange and National Stock Exchange for delisting companies whose trading had been suspended for more than three years.
"We do not want to have the dubious distinction of having the maximum number of listed companies in the world", the Sebi chairman said.
Damodaran said Sebi was also discussing the issue of exit of investors of those companies whose shares would get delisted from the bourses. He said BSE was having the maximum number of such companies facing the threat of delisting.
Other measures announced by Sebi for cleaning up the market also included regulating the distribution business of mutual funds. Damodaran said Sebi was doing this in association with Association of Mutual Fund of India.
This was being done to clean up the mutual fund industry, he said.
Damodaran also said that Sebi would also come up with a set of guidelines for regulating the business of investment advisors.
He said all these measures would have to be taken to make the Indian capital market serve as a benchmark for markets of developing as well as advanced countries.
Sebi would also see to it that corporate governance was strengthened.
Damodaran said all these measures would help in bringing more transparency and returns in the Indian capital markets.
He said Sebi was not bothered about the level of indices, but about the orderly behaviour of the market.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
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