Sebi chairman M Damodaran, who was in Ahmedabad on Sunday, said that to protect small and retail investors and to increase the number of retail investors, SEBI will evolve a new model.
He said that Sebi wanted a new model to protect small and retail investors of the country.
He said the new model was ready but its introduction was being delayed due to some technical aspects.
"The new model will be commenced as soon as the technical problems are solved," said Damodaran.
He claimed the new model will not be a replica or copy of any other developed countries like America.
"This model would not be a blind or mindless copy of American model and there is a vast difference in Indian stock market scenario and out stock market needs a distinct approach," he said.
Damodaran claimed that in India, small and retail investors have 25 to 35 per cent ownership in majority of scripts, compared to developed countries where the major investor institutions control the market.
However, any such model could protect investors who made the wrong investments.
"Our new model will only ensure that investors do not get duped in the primary market," he said.
He stressed the need for stringent regulations as the Indian stock markets have been facing big scams regularly.
"It is necessary to protect small investors and keep the market growth steady and sustainable", he said.
At the same time, the stringent regulations will also have a reverse impact on the Indian stock market as they prolong entry of new entrepreneurs or re-entry of big companies in the primary market, he added.
He said he wanted Indian companies to raise more funds from local resources and less from overseas markets.
Damodaran said that Indian Depository Receipts would be promoted to tap opportunities during the first six months of the current year.