Sebi pitches for pension money in markets as Jaitley takes stock

Jaitley also discusses infra needs for merger of FMC with Sebi to create a unified markets regulator

To deepen capital markets, Sebi today pitched for allowing investment of pension money into various securities instruments and to create an enabling environment for REITs to flourish, as Finance Minister Arun Jaitley reviewed the state of capital markets in the country.

In his first post-Budget meeting with Sebi's board, Jaitley also discussed the capacity building and other infrastructure needs for merger of commodities regulator FMC with Sebi to create a unified markets regulator.

Jaitley also discussed the recent trends related to investments by foreign portfolio investors (FPI) and domestic institutional investors in the securities markets.

After addressing the board members of the Securities and Exchange Board of India (Sebi), Jaitley said he also discussed various issues confronting the regulator, its functioning vis-a-vis new proposals in the Budget and the roadmap ahead.

"They (Sebi) talked about capacity building at Sebi, both in terms of ability to acquaint with the subjects and other infrastructure requirements," the Finance Minister said about the discussions on FMC merger during his customary post-Budget address to Sebi board.

Jaitley was accompanied by Minister of State for Finance Jayant Sinha during his interaction with Sebi's board and other senior officials of the markets regulator.

Besides Sebi Chairman U K Sinha, its 8-member Board includes three Whole Time Members (Prashant Saran, Rajeev Agarwal and S Raman), an independent director and nominees of Finance Ministry, Corporate Affairs Ministry and RBI.

Sebi later said in a statement that its Chairman apprised the Finance Minister of the recent developments in the Indian securities market and the initiatives taken by the regulator.

"He also highlighted the announcements related to the securities market in the Union Budget for 2015-16 and consequent action being taken by Sebi," the regulator added.

"Jaitley discussed the recent trends related to investments by foreign portfolio investors and domestic institutional investors in the securities market. Need for pension money to come to the Indian securities market was particularly emphasised.

"Potential with respect to entry of REITs (Real Estate Investment Trusts) in the market was also discussed. The Finance Minister also took note of the roadmap of FMC's merger into Sebi," Sebi said.