Sebi to simplify norms for firms tapping markets

The Securities and Exchange Board of India (Sebi) Chairman M Damodaran said that the regulator will announce simplified procedures to save time and cost for companies raising capital in the Indian markets "not too far into the future".

Damodaran was speaking at a meet organised by Confederation of India Industries (CII) where John A Thain, chief executive officer, New York Stock Exchange (NYSE) Inc. delivered the key note address on "development in the US capital market and implications for India".

Damodaran said that Sebi was working out the final details of the new procedures and a formal announcement will be made after the necessary approvals are sought from the Board.

Further, he said that the global regulators meet will be hosted in India in 2007 which is testimony to the growing attention Indian capital market was receiving.

India is currently heading the emerging markets group on corporate governance and Indian regulations were fully compliant on 25 out of 30 principles delineated by International Organisation of Securities Commission (IOSCO), said Damodaran.

He added that India would earn full marks on compliance much before the 2007 meet. The regulator said that the markets were caught between disclosures and disclaimers while the truth lies somewhere in between. The idea is to encourage more disclosures and fewer disclaimers, he added.

Expressing condolences over the recent earthquake in his opening remarks, Thain said that there was an increasing interest in the Indian markets from global investors.

"Indian markets are driven by robust economic growth. This explains the growing confidence in Indian stock markets," he added.

He said that the Indian stock market were set to grow further with the growing middle class population whose savings via the pension fund route will propel stock markets like in the US.