CII readies plan to boost market growth

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May 26, 2006 18:57 IST

Confederation of Indian Industry said on Friday sharp fluctuations in the stock markets notwithstanding, the long-term outlook of the Indian capital market is bullish.

Outlining a five-point agenda for healthy growth of the markets, CII said liquidity in the options markets needed to be enhanced to facilitate trade at reasonable prices.

This would encourage investors to hedge their portfolios and facilitate companies to manage risks, the chamber said in a release.

Short-term capital gains also needed to be defined with respect to the circular issued by Central Board of Direct Taxes.

It said any gain arising after 30 days but before 365 days could be termed as a short-term capital gain while any gain before 30 days should be considered trading income.

Companies should also be encouraged to raise money through Qualified Institutional Placements and primary markets, including ADR, GDR, FCCB and preferential allotment route, it added.

The chamber is of the view that a robust technology-oriented system needs to be put in place efficient functioning of stock markets.

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