Capital market experts for stiff entry norms

KOLKATA: Capital market experts on Wednesday said that entry norms for listing of companies on the big stock exchanges should be made stiff and linked to the issue size.
The vice-chairman and managing director of DSP Merrill Lynch, Shitin Desai, said at a seminar organised by CII here on Wednesday that companies coming out with issue sizes of less than Rs 50 crore should not be allowed to be listed on the big stock exchanges.
According to him, these companies should seek listing on the OTCEI or regional bourses.
Desai said that this move will check a number of frivolous companies raising money and then leaving investors in the lurch.
The managing director of Central Depository Services Limited, BG Daga, said that there are nearly 6,000 stocks listed, out of which only 1200 are traded.
He said that entry into the market should be controlled.