The Hindu : Business : Institute for securities markets on PPP model

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Friday, Aug 03, 2007
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Institute for securities markets on PPP model

Special Correspondent

It will source management professionals

CHENNAI: The Securities and Exchange Board of India (SEBI) will unveil its project for the National Institute of Securities Markets (NISM) in a month or two, M. Damodaran, SEBI Chairman, said on Thursday.

Located near Mumbai, the Institute had been established on the model of public-private partnership. It would source members for the faculty from overseas and six management institutes, including five from the U.S., approached the authorities.

Mr. Damodaran was inaugurating a two-day meet organised by the Confederation of Indian Industry (CII) on the changing face of financial leadership. The Union Human Resources Development Ministry had agreed to include lessons on the securities market in the school syllabus. Till now, objections were raised to any move to make the lessons part of the syllabus as it was felt that the minds of school students would be ‘polluted’.

Noting that excess liquidity should not by itself lead to acquisitions, the SEBI Chairman said the factor to be kept in mind was whether the acquisitions would make business sense.

This was where the CFOs (Chief Financial Officers) were neatly positioned to counsel their management.

Clarifying that he did not use the term ‘financial engineering’ in a positive sense, he said it was something that “we can do without”.

He also wanted the CFOs to go into the matter of the companies issuing quarterly guidance, which were “forward looking statements that regulations do not contemplate.”

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