Sebi plans common clearing for all exchanges

Mehta mentioned that at present, the entire concept is in an early stage, once the Verma group report will be out, we will unfold the entire plan. The main objective behind this move is to fasten the clearing process and reduce cost and time lag for clearing of shares.

Citing the example of the US-based fund manager Templeton, Mehta while addressing the seminar on Capital Market8217; organised by the Indian Revenue Service Association, said that government should allowed pension fund to invest in the capital market. He opined that it will prove a great leverage for the market and will enhance the liquidity. He added that Templeton is investing 12 billion in capital market from pension fund. With each passing day, investment in mutual fund MF is steadily on the rise. MF collection during 1998-99 was at Rs 22,800 crore, it went up to Rs 61,300 crore in 1999-2000 and in the first seven months of the current year it reached Rs 47,000 crore which shows that investing community is reposing its faith in the MFs. He added that MF is the best defence for the investors because it insulates the investors from the high volatility of the stock markets.

Mehta assured the gathering that despite the volatility, Indian capital market is safe and in comparison to Nasdaq and other developed markets, the Indian market is less volatile.