of Mutual Funds of India (Amfi) and Association of Merchant Bankers of India (Ambi) become self-regulatory organisations (SROs) to ensure better regulation of the two key capital market intermediaries - mutual funds and merchant banks.
Speaking after the inauguration of Sebi's new headquarters here,
Chidambaram said SROs have not developed in India despite attempts by Sebi to promote the concept of SROs.
Currently, stock exchanges are the only functional SROs regulating its broker members while Amfi and Ambi normally work as industry-representative bodies lobbying with policy makers.
"No SRO is currently registered with Sebi. Amfi and Ambi are hesitating to regulate its members," Chidambaram said.
Commenting on the steps needed to make the capital markets more healthy and attractive, he said the big challenge for the government and Sebi was to persuade people to convert themselves from "savers to investors."
For this to happen, the "irrational fear (of the people) about capital
markets should be removed," the Finance Minister said. "Unless every saver is converted into an investor, we cannot achieve higher level of economic growth," Chidambaram said.
To make capital markets more safer and well informed, Chidambaram pointed out the Sebi initiative to set up the National Institute of Securities Market in Panvel, Navi Mumbai. He extended all assistance from the government to ensure that the institute becomes a reality at the earliest.
Find ways for "reverse brain drain": PM
Prime Minister Manmohan Singh today said India must find ways to encourage the phenomenon of "reverse brain drain' to boost the knowledge economy.
"Some of our brightest students have gone abroad and done well in advanced fields of research. Many of them have been returning home for varying periods of time as visiting faculty at the institutions in India. Many are taking up work assignments in private sector research instutions and companies," Singh said.
Speaking at the inauguration of the concluding session of the platinum jubilee of the National Academy of Sciences India (NASI), Singh said: "Our visa regime, employment regulations and rules, especially in universities and government institutions, must respond to this new phenomenon."
Referring to the growing privatisation of advanced research in science and technology as well as the role of multinationals in knowledge generation, Singh said the challenge before India was to find new ways to sustain adequate incentives for the generation of new knowlegde while making it available at affordable prices to poorer nations. (PTI)
Policies soon for doubling agri growth: Montek
Montek Ahluwalia, Deputy Chairman of Planning Commission, said the commission and the ministry of agriculture are jointly formulating policies in the 11th Plan aimed at doubling agricultural growth.
Updated at 1110 hrs: Prime Minister Manmohan Singh today asked market regulator Securities and Exchange Board of India (Sebi) to ensure that the interests of the investors are fully protected.
"It is the task of the regulator to protect the interest of the investors. This is the primary task of any market regulator," he said after inaugurating the new building of Sebi here.
Singh praised Sebi's effort in ensuring orderly capital market in the country.
Singh emphasised the need to reform the financial sector, and said: "We have to make the debt market more deeper, wider and liquid."
Singh also underlined the need to further reform the insurance and pension sectors. (PTI)