PM, FM for financial sector reform: CNBC

Market regulator SEBI has moved its headquarters from South Mumbai's Nariman Point to Bandra Kurla Complex. Prime minister, Dr Manmohan Singh and finance minister P Chidambaram inaugurated the new premises called 'SEBI Bhavan' today.

Speaking on the occasion, the prime minister said that the SEBI Act would be amended soon to set up an investor protection fund.
He further added that the debt market has not delivered as per expectations and that policy steps are needed to deepen debt markets.

Dr Singh also said that reforms in the financial sector are needed. He is hopeful of a consensus on financial sector reforms in the long run.

He also added that financial markets need to be more competitive and global. Also, he feels there is a need for a much larger insurance sector with a larger cap base and diverse products.

Finance minister, P Chidambaram, said that all market participants should be members of a statutory regulatory organisation or SROs and also emphasised the need for SEBI to widen retail investor participation.

"I think it will be desirable to mandate SROs for all kind of market participants and the market participant should be registered by SEBI only if it is a member of an SRO, just as a stock broker is registered only if he is a member of a stock exchange. I think it is therefore important that SEBI addresses the issue of intermediaries and SROs," said P Chidambaram.