Sebi to take up further market reforms next month:Chidambaram

Expressing satisfaction over wide-ranging reforms announced by Securities and Exchange Board of India (Sebi) yesterday for mutual funds and other segments, Chidambaram said he has requested Sebi Chairman U K Sinha to look into a number of other suggestions for the benefit of investors.

"The examination by the Government and Sebi is likely to be completed in the next two weeks. I have requested Sebi Chairman to schedule another meeting of the (Sebi) Board in early September when some more decisions can be taken on the suggestions that are under examination," he said.

The Finance Minister said the measures announced by Sebi yesterday "will stimulate financial savings among households as well as give a fillip to the mutual fund industry. More and more households should be encouraged to save in financial instruments rather than in gold".

In a statement, Chidambaram also said he expects the government to take a decision shortly on Sebi's recommendation for providing tax benefits to equity mutual fund investors under the proposed Rajiv Gandhi Equity Savings Scheme (RGESS).

In the longest list of decisions taken at a single board meeting in many years on Thursday, Sebi announced steps for expanding the reach of IPOs and MFs across the country through measures like electronic public offers (e-IPOs).(MORE)