IDRs likely to be permitted by 2007: SEBI
The institute would be set up with public-private partnership.
By PTI |
KOCHI: Foreign companies will be able to raise funds in the Indian stock markets by 2007, with market regulator SEBI saying it expected Indian Depository Receipts to be operational from next year.
"We expect IDRs to be launched by 2007," SEBI Chairman M Damodaran said in his K P Hormis Memorial Lecture organised by the Febbank K P Hormis Trust here last night.
This would ensure that foreign companies raise funds in the Indian market in a cost effective manner, he said. In the next 12-18 months, some of the biggest companies in the world would be filing for IDRs, he said, but did not elaborate.
He said other initiatives being planned by SEBI were a dedicated exchange for Small and Medium Enterprises (SMEs) by next year and a comprehensive training institute for capital market personnel in Mumbai.
The institute would be set up with public-private partnership, he said.
Along with imposing regulations, SEBI also wanted to reach out to investors and was in the process of starting a major investor campaign, which would be funded by the Investment Protection Fund, he said.
On allowing foreign investment in Indian bourses, he said the government's decision in this regard was awaited. The ownership structure of stock exchanges would be different in the coming few months, he added.
Though there are more than 950 registered Foreign Institutional Investors in India, there was no need to fear that FIIs held sway in the Indian capital market.
"We will ensure that our markets are open to FIIs," Damodaran said.
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