Se Federation To Set Up Ombudsmen Panel For Bourses

The suggestions came up for discussion at Saturday's FISE meeting attended by the top brass of about 15 stock exchanges at Ludhiana, and according to sources, most stock exchanges felt that this could be an effective way to put an end to the red tape which the investor has to put up with for redressal of grievances.

What has been proposed, is that each stock exchange, will set up a panel of experts drawn from various fields and an investor will have the right to take his grievance to the panel for speedy redressal.

In another move, the federation has also decided to set up an effective safety net for investors which would aim at providing the investor an opportunity to make an exit from a stock which is not performing well.

 

According to Arjun Kapur, president of the Delhi Stock Exchange, this can be achieved by making market making more effective at each stock exchange with a view to serve as a safety net.

In a move which has come as a major boost for the smaller stock exchanges, the federation has also agreed to set up a sub-committee to study the implementation of inter-connectivity among all the stock exchanges.

The sub-committee will comprise of Ludhiana, Jaipur, Kanpur, Vadodara and Bangalore stock exchanges and will in consultation with M R Mayya. It will prepare a detailed study on the implementation of inter connectivity of all stock exchanges and submit its report by the next FISE meeting slated for mid-October.

It will be remembered that the steering committee of the federation which had met recently had decided to put the inter connectivity plans on the backburner. This had, however, come in for sharp criticism by the smaller stock exchanges.

Sanjeev Gaur adds from Chandigarh: The Federation of Indian Stock Exchanges (FISE) has expressed concern over the poor performance of companies and the stringent regulations adopted by regulatory authorities.

At a meeting in Ludhiana on Saturday, members of the federation strongly advocated that investors' confidence should be revived.

Representatives of 15 stock exchanges from different parts of the country attended the meeting, presided over by Arjun Kapoor, chairman of the federation.

The meeting discussed the revival of investors' confidence in the stock market and the possible steps which should be taken to bring back the stock markets to life.

It was felt that the role of erring companies, merchant bankers, registrars, stock brokers and stringent and impractical regulations were chiefly responsible for the loss of investors' confidence. The meeting stressed the need for launching a programme for investors education, punishing erring companies, merchant bankers and registrars. The meeting also demanded that the ministry of finance extend incentives in the form of exemption from capital gains tax and removal of double taxation from dividends.

The meeting also felt that the image of the brokers should be improved. The meeting announced the formation of a sub-committee to delegates to achieve this task.

The members also decided to participate in the project for the inter-connectivity of stock exchanges and stressed the need for immediate implementation of the concept.