Market making likely to boost bourses — Gupta

"A strong market is one which is driven by domestic participants rather than the whims and fancies of FIIs. The FII influence on the Indian market has been strengthening rather than weakening," said former BSE president MG Damani.

Damani also stated that insurance agencies have large investible funds and should be encouraged to be pro-active, provident fund subscribers should be allowed toborrow money, RBI should permit banks to do vyaj-badla which might revive the market.

Dennis Grubb, principal consultant of Price Waterhouse, while speaking on the role of the regulator in the Indian capital markets, made a case for SEBI to be entrusted with enforcement poweres.

VH Pandya, former executive director of SEBI, said that the ills of the capital market can be traced back to the capital issue pricing mechanism and can be removed through the control of issue pricing. It is also the responsibility of self regulatory organisations (SRO’s) besides SEBI to bring a discipline to the markets, he added."The long term issue of investing in the capital markets should be addressed and the commensurate measures taken to bring back the investor," said Ajay Piramal, MD, Piramal Industries.