MUMBAI, Feb 14: The two largest Indian stock exchanges, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have decided to become members of the International Organisation of Securities Commission (IOSCO). This follows an invitation to the two exchanges to this effect by IOSCO technical committee chairman Anthony Neoh, as well as chairman of the securities and futures commission of Hong Kong.Neoh said the two exchanges can become members of the organisation in their capacity of being self-regulatory organisations or stock exchanges. They can become affiliate members of IOSCO and play a crucial role in discussions on policy initiatives required for the development of capital markets.
"We have been asked to become members of the international organisation. We would, needless to say, respond in the affirmative," said a senior NSE official. Earlier, while addressing a gathering of market participants, Neoh said that with the depository being set up, settlement systems would become more efficientin the country. Moreover, once the government further opens up the market to foreign institutional investors, Indian companies would be able to atrract these FIIs to India and ADRs and GDRs would become a thing of the past, said Neoh. In context to the recent south-east-Asian currency turmoil, Neoh said an issue which is being debated in the Asian countries today is whether or not they were structurally prepared for capital account convertibilty before going in for the same.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
