Fi Nominees Role Being Reworked

The government wanted the FI nominees to play a more active role, Chidambaram told a press conference held after he inaugurated the country's first depository set up by the National Stock Exchange, UTI and IDBI.

"There was also a need for a code for corporate governance," he said.

Chidambaram said issues like share buyback and the misuse of stockinvest were being looked into by his ministry.

In an apparent move to shore up investors confidence in the markets, Chidambaram also announced that the disclosure norms for companies relating to end use of funds (to be detailed in balance sheets) have been notified this week by the DCA. The relevant schedules in the Companies Act have been amended, he said.

 

Asked about the state of the markets, the finance minister allayed fears that several companies which had raised funds from the markets in recent years had vanished. Chidambaram said "there is no evidence to show that these companies have vanished", quoting a Sebi study of 382 companies that had tapped the market in 1994-95 with premium issues.