‘Stock brokers must corporatise business’

It will help brokers to access overseas markets and tap the funds of Indian Diaspora for domestic markets apart from attracting professionals to the “family- controlled business,” he said. In his Budget for 2008-09, the finance minister had favoured listing of more Central Public Sector Enterprises. He said the BSE and NSE should also consider helping the small brokers to access overseas markets.

While enumerating steps taken by the government to broaden the capital market in the past 10 months,

Chidambaram said the government attached “highest importance to capital market.” “We will continue to strengthen, deepen and broaden capital market,” he said.

On the regulation of markets, Chidambaram said the finance ministry has commissioned a study to the World Bank to suggest an effective SRO (Self-Regulatory Organisation) model in the Indian context.

Chidambaram said market regulator Sebi was in the process of recasting the SRO regulations in order to incentivise the formation of more SROs. Sebi is also in dialogue with various capital market organisations and make the SRO regulations more “market-friendly,” he said.

The market regulator is considering various models of self-regulation for intermediaries and would be promoting SROs by way of creating new regulations and an enabling law.