More market reforms next month: Chidambaram

Finance minister P Chidambaram said on Friday that the Securities & Exchange Board of India (SEBI) is expected to announce fresh capital market reform measures next month, even as he expressed satisfaction over the reforms announced by (SEBI) on Thursday for mutual funds and other investor categories.

Chidambaram said his ministry has requested SEBI chairman U K Sinha to look into a number of other suggestions for the benefit of investors. He hoped that more people would invest in financial instruments rather than gold.

"The examination by the government and SEBI is likely to be completed in the next two weeks. I have requested SEBI chairman to schedule another meeting of the board in early September when some more decisions can be taken on the suggestions that are under examination," he said in a statement.

Chidambaram said the measures announced on Thursday "Will stimulate financial savings among households as well as give a fillip to the mutual fund industry. More and more households should be encouraged to save in financial instruments rather than in gold."

Chidambaram also said he expects the government to take a decision shortly on SEBI's recommendation for providing tax benefits to equity mutual fund investors under the proposed Rajiv Gandhi Equity Savings Scheme (RGESS).

He said the government has taken note of the SEBI's recommendations on RGESS and that he has asked the capital markets division of the Department of Economic Affairs to examine these.