Sebi Chairman DR Mehta told The Financial Express that the system of market making will be implemented in a week or ten days from now. Once the report is submitted to Sebi, the board will approve and publish the draft within a week, he added.

Sebi had appointed a committee headed by IDBI Chairman GP Gupta to prepare the draft regulations to facilitate the implementation of market making in the stock markets. The committee is expected to submmit its report during the week, Mehta said. However, the Delhi Stock Exchange is already implementing market making on the bourses.

Mehta is here in connection with a vist to Hyderabad Stock Exchange and has addressed its members. He said that the primary object of Sebi is to build confidence among small investors. And to achieve this goal, it had taken various revolutionaryset-ups, despite sharp reactions from some broking quarters.

To a suggestion made by a senior HSE member regarding the improvment of liquidity on the bourse, Mehta felt that the market maker system will provide a chance to the investor to withdraw from illiquid stock, while improving liquidity. On HSE, Mehta announced that he will accord in-priciple approval to the bourse to estabilish additional trading flours (ATFs) at any part of the state excepting Vijayawada. On vanishing companies, Mehta said that the Sebi is doing everything it could do under law. It has powers only to issue notices to the erring companies, which it is already doing. Its directors will be debarred from capital markets. Further,in collaborating with the department of company affairs (DCA) Mehta is hopful that at least some of the directors may be punished for criminal liability.