The Hindu Business Line : To cope with increased demand — SEBI strengthening tech infrastructure

THE Securities and Exchange Board Chairman, Mr G.N. Bajpai, has indicated that the expansion and fine-tuning of the capital market technical infrastructure was partly necessitated because of the recent mistakes in allotment of PSU shares after their disinvestments.

Talking to newspersons here on Tuesday, the SEBI chief said that in March this year some Rs 50,000 crore was mopped up from the primary market. The investor base had also doubled.

To cope with increased demands on the capital market systems, the physical and technical infrastructure was required to be scaled up.

The market regulator expected the blueprint for such infrastructural expansion would be ready some time later this year.

He hoped the real time gross settlement (RGTS) mechanism, on which the RBI was working to smoothen the T+1 system across the country on a foolproof and integrated technological network, would be ready this year.

The seamless payment and electronic transfer of money within 24 hours across the country is a precondition for effective T+1 system.

Four banks have already started providing RGTS experimental basis.

Talking about survival of the gasping regional stock exchanges, Mr Bajpai said the process of an alternative platform in form of the proposed Indonext was still alive.

"We have reviewed the proposal by 14 regional exchanges and suggested some additions and alterations to the proposals. The final proposal was yet to come to us, he added.

The Calcutta Stock Exchange, once the third largest among the bourses, is still not a proposed participant of the Indonext experiment, which moots a common platform for all regional exchanges along with the Bombay Stock Exchange.

The market regulator felt that the domestic capital market has been growing and turning out to be an efficient one at a fast pace.

Aberrations and corrective steps along the road were bound to be a part of the moving process, the SEBI chief suggested.

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