The Hindu : Business : SEBI chief visits Nasdaq

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Wednesday, Apr 20, 2005

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SEBI chief visits Nasdaq

Regulators need to keep in touch and cooperate with one another

STRENGTHENING TIES: M. Damodaran, Chairman, Securities and Exchange Board of India, along with Nasdaq officials in front of the Nasdaq stock market site in New York after the opening of the Nasdaq stock market on Monday.

NEW YORK: The Securities and Exchange Board of India Chief, Damodaran, kicked off his U.S. visit by ringing the opening bell at Nasdaq on Monday and met his counterparts in the U.S. He said regulators needed to keep in touch and cooperate with one another and had common standards as more and more Indian companies listed abroad, as long as there were currency and investment flows across the borders. "We believe that those (Indian companies) that have come here are excellent companies and they have done very well. You will see this phenomenon increasing as companies increase operations,'' he said.

Mr. Damodaran said the market regulator had asked the stock exchanges to furnish trading data to find out whether there was market manipulation on Friday last when the Sensex crashed by over 219 points and wiped out over Rs. 50,000 crore of investors' wealth. The regulator had slapped show cause notices to 12 entities for alleged price manipulating that led to the market crash in 2004, he added.

"My concern is not to see where the index is but to see that game is played properly,'' Mr. Damodaran told CNBC. On the 2004 market crash, he said, "show cause notices have been issued to 12 entities... Not all of them have responded to the show cause notices.'' If the explanations of those entities are not satisfactory, SEBI will consider remedial and corrective measures, he said without naming the entities.

— PTI

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