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Advisory committee mooted
MUMBAI: The L C Gupta committee on introduction of derivatives has called for the setting up of an advisory committee for the derivatives market. This would involve a greater co-ordination between Sebi and the RBI. In a presentation at the IOSCO-APRC meeting on "Development of derivatives market in India", senior executive director of Sebi, O P Gahrotra, said that the derivative exchange would act as a self-regulatory organisation with Sebi acting regulator as the last resort.Highlighting the committee's major recommendations, Gahrotra said that it has advocated a separate clearing mechanism, qualified brokers and dealers, regulation of sales practices and a continuation of the on-going reforms in the underlying securities markets. As regards the eligibility criterion for exchanges introducing derivatives trading, Gahrotra said that existing exchanges may introduce it. A multiple-derivatives exchange model has been proposed for ensuring a competitive environment. The committee has also called for anindependent governing board for the derivatives segment. This would have to be conducted online and with a minimum of 50 members . Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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