Sebi chief on hedge funds, SMEs - Video

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The implications of the consolidation of stock exchanges worldwide and the role of hedge funds and how to regulate them would be one of the main topics to be discussed during the annual four-day International Organisation of Securities Commissions (IOSCO) meeting here early next month.

This is the first time that India is hosting the IOSCO conference, which will also discuss the issue of providing a separate platform for small and medium enterprises (SMEs), the Chairman of Securities and Exchange Board of India (Sebi) M Damodaran told reporters here.

IOSCO conference, to be attended by capital market regulators from various countries, would discuss the "implications of the ownership pattern" in stock exchanges in various countries after the consolidation.

Recently, New York Stock Exchange picked up 5 per cent stake in National Stock Exchange, and Germany's Deutsche Boerse and Singapore Stock Exchange bought 5 per cent stakes each in Bombay Stock Exchange.

Damodaran said the "problem associated with hedge funds" and the issue of providing a separate trading platform for SMEs were of much importance of most of the regulators across the world.

Regulation of the hedge funds, various problems associated with their identification and debate over whether to allow them direct entry into the markets, would be discussed during the meet, he said.

On the SME sector, the issues that would come up include whether the compliance standards, governance standards and the listing standards for them to be similar to that was applicable for large companies.

The IOSCO would take place between 9-12 April and would see participation from global investment fraternity including regulators, merchant bankers and market participants.