The primary market is set to revive with a number of companies lining up initial public offerings, according to G N Bajpai, chairman, Securities and Exchange Board of India (Sebi).
The secondary market will see a revival on the back of attractive valuation of scrips, Bajpai said at a seminar jointly organised by the Bombay Stock Exchange and the All India Association of Industries here today.
"Notwithstanding the impact of geo-political developments, opportunities of growth are emerging in the market," the Sebi chief said adding "The valuation of many stocks was low and there is potential in the secondary market to make profits."
Seeking better interaction among the market participants, he said Sebi will like to reduce the regulatory burden to the minimum. The entire process should be geared up for results and self regulatory organisations such as stock exchanges should leave behind rules and norms that have lost their relevance, Bajpai added.
On the issue of influence of global developments on domestic markets, he said: "In the borderless world, Indian markets will be impacted by various social and geo-political developments."
The stock exchanges should be ready for competition from other international exchanges to attract funds from Indian investors, he added.
Bajpai said that Sebi will soon set up a central listing authority with common and pragmatic rules for the benefit of companies listing their scrips. The regulator's aim was to make transactions easy and least expensive, he added.
P P Vora, chairman, Industrial Development Bank Of India, said: "Listed companies should improve transparency and adhere to the corporate governance code to maximise shareholder value."
"Financial institutions in recent times have pressed for change in management of under performing and defaulting companies," Vora said.
B S Pandit, executive director, Unit Trust of India, said, "The demand for floating rate debt or indexed debt with interest rates either fully or partly linked to an index or commodity (say oil) may emerge in the future."