Sebi Chief Lambasts Unusual Views On Takeover Code

The Securities and Exchange Board of India (Sebi) chairman D R Mehta criticised various industries association for their `unusual comments in relation to the formulation of the new takeover code. He was presiding over the sixth Phiroze Jeejeebhoy memorial lecture organised by the Bombay Stock Exchange yesterday.

All the three industrial associationsFicci, Assocham and CIIwere part of the committee which formulated the code and it is surprising that some people are still raising unusual questions, Mehta said.

He said that the fears expressed by certain section is uncalled for and is a reflection of lack of confidence.

The disclosure norms for the raider has been made stringent and the party has to disclose the source of funding, the Sebi chairman stated. Sebi does not stand for industry but to safeguard the interest of small investors. Investors gain by takeover, and it is a normal practise world over, he said. Mehta added that 16 stock exchanges all over the country will have on-line trading by the end of February.

 

Delivering the keynote address, the secretary general of International Federation of Stock Exchanges, Gerrit H. de Marez Oyens said, with technology going hi-tech, the manner in which stock exchanges did business has changed considerably. Todays approach of running a securities market has been become more a business enterprise.

Traditionally stock excha-nges were governed by an elected council, coming from membership only, reflecting the membership driven, rather than user driven way of operating.