Ease entry norms for capital markets: Prime Database

Another issue which needs utmost importance from the government regards the punishing of vanishing companies.In spite of an assurance by the PM that action against these firms would be taken within three months time, no concrete steps have been taken and the deadline has elapsed, Prime Database pointed out. Action was now overdue not only against those companies who have not filed their balancesheets or can not be located at their register offices, but also against companies whose share scrips have become meaningless because of misutilisation of issue funds or other fraudulent practices. "Punishments will give investors the assurance of an effectively regulated market in future and also serve as deterrents," Prime said.

Though expectations are being raised from the forthcoming budget for revival of capital markets, such hopes are belied as far as the primary market was concerned.The issue is more of building confidence of investors than fiscal measures, it said.The budget, could, however, provide a platform to announce some initiatives to help revive the confidence of primary markets, It said. To ensure liquidity in the capital market, Prime said all initial public offerings (IPOS) of upto 10 crore should be listed only at the OTC Exchange and such other National exchanges.