MUMBAI, JAN 18: Union Finance Minister Yashwant Sinha on Thursday claimed that the Indian capital market “was safer today than ever before†despite recent volatility in the stock prices.“A lot of volatility has been witnessed on the stock exchanges in India, but no payment crises has arisen,†Sinha further claimed, while launching ‘Jaago Investors Abhiyaan’ of the Investor Grievances Forum at the Bombay Stock Exchange. The benchmark Sensex struggled to close with a gain of 30 points at 4113 on Thursday, which is 33 per cent down from the 6150 level recorded in February 2000. “The regulatory environment for investors’ protection and for controlling corporate behaviour, has improved substantially in the last decade,†Sinha went on with his claims, adding SEBI had successfully guided the capital market reforms. “We have to remember that happennings like the 1992 securities scam had a major impact on investor’s confidence and better disclosures would help avoid repetition of past mistakes,†the Finance Minister stated. However, there was no word from Sinha about hundreds of vanishing companies, finance companies which downed shutters with investor funds and promoters of plantation companies who siphoned off several crores from investors. Putting the onus on the stock exchanges, Sinha said stock markets would have to ensure that the loopholes in the rules and regulations are plugged. “Money from investors will not come till confidence is established,†Sinha said. Tax sops for insurance cos: Sinha also assured new private insurance players of a level-playing field with uniform application of tax rates across the sector to provide a conducive environment for competition. ‘‘It is our intention to create a level-playing field for the new players so that they look at the future with equanimity and assurance,’’ Sinha said at the inaugural function of HDFC-Standard Life Insurance Company’s corporate office in Bandra-Kurla complex.According to him, his ministry is looking forward for the Eradi committee report on taxes for insurance sector, which is expected shortly. “The ministry would examine them and try to incorporate them in the forthcoming budget,†he said. The committee was expected to present this report in the next two days to the government, Y H Malegam, member of insurance taxation panel, said. Disinvestment target to be missed: The government will not be able tomeet the divestment target of Rs 10,000 crore this fiscal, Sinha. “The budgeted target will not be met as the processess related to disinvestment programme have taken much longer and they might go into April or May,†Sinha said. The government was proceeding according to a carefully laid down plan, the Finance Minister said. “The government has made a paradigm shift this year because we are not divesting shares in small lots as was done in the past, but have decided to move to what is called as strategic sales, which involves privatisation and transfer of management to private sector,†Sinha said. Tax structure: Sinha said that there is a need for the simplification and rationalisation of the tax structure in the country. He was speaking at the formal launching of Eximkey.com, a specialised portal dedicated to foreign trade. Sinha added that exports growth stood at 20 per cent during 2000, and it was expected to continue. According to Sinha, “The international environment is dynamic and currently there is a lot of concern about the slowdown in the American economy. One hopes that the international situation will be conducive.†Co-op banking: The centre is keen on implementing the suggestions mooted by the Jagdish Capoor task force for restructuring co-operative banking in the country, Sinha said, inaugurating the new building of NABARD at the Bandra-Kurla complex here.
