During the whole of 1998-99, only around Rs 4,000 crore was raised, he said. He reiterated his earlier comments on the mutual funds sector, ending up with around Rs 50,000 crore of inflows (gross) during the current fiscal. MF collections, he said, had gone up partly in response to the tax breaks given to the sector in the general budget and expressed the hope that the incentives would not be withdrawn in the next budget.

Speaking at the 6th annual financial services convention organised by the Bombay Management Association (BMA), Mehta talked about the need for reforms in the financial sector, in tune with international trends, and said that the West was reacting positively to the developments taking place in Indian capital markets.

Mehta said the surge in market indices was an example of how a well-regulated market (in terms of investors' safety) could inspire confidence amongst the investors and entice them to invest in shares.

Chairman of Unit Trust of India, PS Subrahmanyam, who also spoke at the convention said that there was a "paradigm shift" taking place in the financial services sector, with breaking down of barriers between the various activities in the main industry sector. He gave the example of an oil company, which had 60 per cent revenues coming from activities other than refining, marketing and distribution.

Shareholder value (in terms of creating wealth for the shareholders both within the company and in the market place) and good governance are occupying the minds of corporate managers apart from management structures.

Best governing practices, transparency and greater disclosure are now driving the corporate world. By tapping investors both within and outside the country, promoters are capitalising organisations for greater shareholder value. He predicted that market capitalisation of the exchanges would be double of what it is now in a few years, with a more equitable distribution of wealth.