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Govt has small investors in mind this week
BS Economy Bureau in New Delhi |
January 15, 2003 11:46 IST
These include a formal split of the Unit Trust of India, retail trading in government securities and launch of national investor awareness campaign.
Finance Secertary S Narayan, along with UTI Chairman M Damodaran, will announce the transfer of UTI-II to its new sponsors on Thursday.
The four new stakeholders -- State Bank of India, Life Insurance Corporation of India, Bank of Baroda and Punjab National Bank -- have contributed Rs 2.5 crore (Rs 25 million) each to the capital of UTI-II or UTI AMC Ltd, which holds all the net asset value-based schemes of the trust.
He will also announce the new management structure of UTI-I and UTI AMC Ltd.
Finance Minister Jaswant Singh will kick-start retail trading in government securities on Thursday on a National Stock Exchange terminal in North Block.
Retail investors will for the first time be able to gain from the rally in the gilts market, which hitherto has been restricted to primary dealers and public sector bank treasuries.
The Securities and Exchange Board of India is likely to issue detailed guidelines, including margin requirements for individuals for gilts trading.
The move is expected to add further depth to the debt market. Provident funds and employee trusts will also now be able to execute trades in the gilts market directly.
On Friday, Prime Minister Atal Bihari Vajpayee will launch a nation-wide investor awareness campaign to be spearheaded by the capital market regulator Sebi.
According to government sources, certain policy measures aimed at bringing back the small investor to the secondary markets are likely to be announced. The finance minister is expected to make the announcements.
Government sources said, small investor participation in trading activity was a must to induce vitality in the secondary equity and debt markets.
The government has already addressed the concerns of the small investors by strengthening the regulator through an amendment of the Sebi Act in the winter session of Parliament.
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