| He said interest has been expressed by regional bourses to act as an exchange for small companies. "We are not sure if regional exchanges can be the right platform for SMEs considering their past track record and over-the counter exchange has already failed," he added. |
| "Initially, there will be one exchange and we can look at launching more if the market grows up," Damodaran said. The market regulator also said that it is in process of rewriting Sebi regulations. On investment advisors, he said that there is a need for a body of trained investment advisors. |
| National Institute of Securities Market (NISM), an initiative by Sebi to pursue securities market education and research, has been making significant progress in this regard and is going to sign an MoU with Stern School of Management on February 11. |
| Sebi has already set up an investor protection fund in accordance with demands for investor protection and education. |
| "After the Sebi Act is amended, all the fines and penalties will go towards the investor protection fund, which can further be used for investor education and awareness," Sebi chief said. |
| Emphasising the need for the formation of a self-regulatory organisation, Damodaran said they need to show more urgency and it should happen sooner rather than later. "Sebi cannot continue to be the first level regulator all the time," he added. |
| Putting to rest, talks of talent crunch haunting the market regulator, Damodaran said that Sebi has recruited people from business and law schools and 37 of them are expected to join soon. |
| Amid the debate between principle and rules-based regulation he said, "We need rules based regulations with rules -based on principle. It can never be principle versus rules." |
| He also outlined that while markets are integrating and there have been rapid fund-flows across countries, regulations will continue to be national. |
Top Section
Explore Business Standard