"There are disturbing reports that debarred stock brokers are misusing regional stock exchanges and sub-brokers behind the scene. It is necessary for capital market regulators to take action against possible misuse of these parties", he said.
Chidambaram warned that government would take stringent action against the debarred stock brokers who are playing behind the scene.
"As bad money drives away good money, bad brokers will drive away good brokers from the capital market. Therefore, it is necessary to chalk out the roadmap for sub-brokers against manipulation by these unsavoury stock brokers", he said.
Asking all regional stock exchanges to corporatise immediately, the Finance Minister said there is no place for 'Spiderman' or 'Superman'.
"Regional stock exchanges and stock brokers should adhere to the deadline laid down by the market regulator for corporatisation. Corporatisation will offer better quality of service and continuity in capital market", he said.
The Finance Minister assured he would look into regulatory and tax-related hurdles in the way of corporatisation of regional stock exchanges and stock brokers.
Asking the stock broking community to invest in the latest and advanced technology to remain competitive in the area of globalised security market, he said government would encourage the concept of universal stock broking mechanism.
"Thinking beyond Dalal Street is a welcome step. The country has to integrate this capital market with the globalised security market," he said.
Referring to the development of Mumbai as an international financial hub, Chidambaram said the government would shortly set up a committee to lay a roadmap to make the city the heart of international finance activities.
"I have mentioned this in my Budget speech. And so, I have been labelled as dream merchant. But I am sure Mumbai has geographical advantage and energy to become an international financial hub", he added.