"We have to work the proposal out in a legal framework and present it to the regulator." The regulator had earlier rejected the proposal sent by the bourse which mentioned of forming the fund with the existing funds available with the exchange. However, the regulator felt that a new fund needs to be set up for the purpose and members have to give contributions afresh.
The BSE depository will commence operations in the first quarter of 1997. The managing director for the depository will be chosen in the next few days. Price Waterhouse has already presented its report to the bourse. They will be now advising the exchange on shortlisting the software and hardware vendors.
Damani told newsmen yesterday that the National Securities Depository Ltd had approached them for co-operation on the front. He said: "We are planning to service more scrips through our depository."
The bourse has also raised its concerns about the liquidity situation and has called on the finance ministry to make provisions for liberal finance for intermediaries. It has suggested that that the retail investor needs to be given incentives in the form of a 10-year old tax holiday arising out of sale of shares.
