Mumbai: The Securities and Exchange Board of India (SEBI) proposes to introduce Indian Depository Receipts (IDRs) in the domestic capital market from next year. Some of the biggest companies in the world will be filing for IDRs in India in the next 12-18 months, SEBI chairman M Damodaran said.

Depository receipts would ensure that companies could raise funds in a cost effective manner, Damodaran said. He was delivering the ninth K P Hormis Memorial Lecture organised by the Febbank K P Hormis Trust in Kochi.

He said the SEBI had planned to set up a dedicated exchange for small and medium enterprises (SMEs) and a training institute for capital market personnel in Mumbai.

Damodaran said the proposed institute would be set up on public-private partnership basis.

He said there are over 950 registered foreign institutional investors (FIIs) in India and "we will ensure that our markets are open to FIIs".

However, opening Indian stock exchanges for foreign investment would depend on government policy, he said, adding a decision on this was awaited. The ownership structure of the stock exchanges would be different in the coming few months, he added.

He said the regulator also was in the process of starting a major investor campaign, which would be funded by the Investment Protection Fund (IPF).