The Hindu : Business : SEBI chief for balanced regulation

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Thursday, Nov 22, 2007
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SEBI chief for balanced regulation

Special Correspondent

Financial education crucial for investors and advisors

— PHOTO: PAUL NORONHA

CARROT AND STICK: M. Damodaran (left), Chairman, Securities and Exchange Board of India, with K. V. Kamath (centre), Vice-President, CII, and Managing Director and CEO, ICICI Bank, and Rajnikant Patel, Managing Director and CEO, Bombay Stock Exchange, at the CII summit in Mumbai on Wednesday.

MUMBAI: Securities and Exchange Board of India (SEBI) Chairman M. Damodaran on Wednesday said there should be a healthy balance of regulation in the markets that must neither be too stringent to stifle innovation nor too liberalised to result in a crisis.

Real Estate Trust

The regulatory body had been working closely with the Association of Mutual Funds in India (AMFI) on introducing mutual funds in the real estate sector and that “we may have Real Estate Investment Trusts (REITs) in India also,” said Mr. Damodaran, while delivering the inaugural key note address at the Confederation of Indian Industry’s (CII) second capital market summit here.

He said SEBI was looking deeply into the issues of financial education for investors and advisors that would not only educate them about the various asset classifications but also enable them to know more on the alternatives available.

K. V. Kamath, Vice President, CII, Chairman, Financial Services Council, CII, and Managing Director and CEO, ICICI Bank, while delivering his special address stated that there is was difference between the rational and the irrational exuberance in the economy especially in context of the momentum in the market over the years. He discussed the transformation of the Indian economy on the whole as an energising factor that was driving the growth cycle today.

Rajnikant Patel, Managing Director and CEO, Bombay Stock Exchange, in his welcome remarks said there was conservative exuberance that one could see in the market today and to overcome this India needed to focus largely on the appropriate product offering, market integration and projection of India as a preferred investment destination.

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