Securities and Exchange Board of India (SEBI) received a request from Prime Minister Manmohan Singh to promote infra debt funds (IDFs) in order to boost funding to the infrastructure sector.
Speaking at SEBI’s silver jubilee celebrations in Mumbai, he said the capital market regulator must take a lead in ensuring that IDFs are established and that they face a supportive regulatory environment. He highlighted the need to facilitate infrastructure development funding as the government envisages about $1 trillion investment in the sector during 2012-17.
SEBI was also asked by the minister to make easier flow of funds from sovereign wealth funds, university funds and pension funds. He asked the regulator to root out insider trading and build human and technological capabilities to fulfill its mandate of delivering strong and effective enforcement.
Referring to the recent decline in financial savings as a percentage of GDP, he said: "The imperative of growth requires an increasing proportion of savings getting channelled into financial assets to facilitate their deployment in the most productive uses".
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