NSE members favour new regulator

The Association of NSE Members of India (ANMI) has mooted the idea of a new self regulatory organisation (SRO) for all the key constituents of the capital market "" brokers, mutual funds and merchant bankers.

"We are seeking 4-5 SROs, one each for every sectors like mutual funds, brokers and merchant bankers," said Bijay Murmuria, president, ANMI.

According to him a single SRO for all the sectors will not be ideal. Thus the concept of a super SRO which was being promoted by Sebi till recently will be put off yet again. Murmuria even claimed that SEBI is aware of the concept and is already in process of formulating new guidelines.

"We have already submitted a proposal to Sebi and the reply of the market regulator is awaited. ANMI is a proactive interface between market intermediaries, regulators, exchanges and the government and hence the SRO status will benefit all," he said. The association, which for long has been for the NSE members has successfully inducted the members of BSE to it.

"We have inducted 60-70 members till now which takes our total strength to 950 members," Murmuria said while talking with the media here today.

Commenting on the new regulations of the securities transaction tax (STT) to be set off as a business expense rather than against other taxes paid which was the case earlier, he said the new norms would hit the volumes of the market at large.

"There is a great chance that the turnover of the broking houses would go down from April. The arbitrageurs, who trade in wafer thin margins provide much needed liquidity to the market, which in turn reduces the impact cost of the investing community, hence the market liquidity is bound to get affected," he explained.

The association has submitted a letter to the Finance Secretary in this regard and is waiting for the government's response.