70 km from Dalal Street, an institute to study the stockmarket

Mumbai may be a long way off from becoming Shanghai or, more importantly, an international financial centre on the lines of London and New York but the city may already be on its...

Mumbai may be a long way off from becoming Shanghai or, more importantly, an international financial centre on the lines of London and New York but the city may already be on its way to becoming a training hub for market watchdogs as well as financial intermediaries across the developing world.

A long-pending plan, discussed since 2003 by Securities Exchange and Board of India (SEBI) officials and announced in the 2005 Union Budget by Finance Minister P Chidambaram, to set up a National Institute of Securities Markets (NISM) is finally close to take-off with the Maharashtra government allotting 68 acres for it at Panvel, around 70 km from Mumbai’s financial district.

G Sethu, Officer on Special Duty in charge of NISM, told The Sunday Express, “The idea is to make the market more informed. We will develop knowledge across the spectrum of the capital market and disseminate it to five target constituencies — investors, issuers (companies), regulators, intermediaries and public-opinion makers such as media, judiciary and legislators.”

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While about 40-odd developing countries are expected to be interested in training their regulators at NISM, some African regulators have already started calling regarding dates.

While a full-fledged campus with residential facilities will come up at the plot, the institute intends to link up with colleges and universities to offer financial literacy courses. A special cell under SEBI chairman M Damodaran, who also heads the institute’s board of governors, is working overtime on establishing the institute. The governance and organisation structure is in place and financial literacy courses may be the first to begin. “Market participants have expressed willingness to join hands with us to spread financial literacy. The training material is ready and delivery channels are being finalised,” said Sethu.

An advisory board with international scholars such as Marti Subramanyam, professor in finance, economics and international business at New York University’s Stern School of Business, is putting together a research agenda for the institute. Graduate level programmes in securities markets are being worked out. The institute also plans to talk to Bombay University for creating a PhD programme.