(a) whether the Union Government are aware that according to a survey
report received by the Government in April 2005, the share depository
system introduced by the Securities and Exchange Board of India (SEBI)
in 1996 for attracting small investors has resulted in exactly opposite
of the market regulator`s goal;
(b) if so, the details thereof;
(c) the deficiencies identified in this regard; and
(d) the corrective measures taken or proposed to be taken by the Union
Government in this regard ?
MINISTER OF THE STATE IN THE MINISTRY FINANCE
(SHRI S.S.PALANIMANICKAM)
(a) to (c): Under a Technical Assistance Agreement with the Asian Development
Bank, a national sample survey was conducted to, interalia, study the income,
expenditure and savings behaviour of the Indian labour force. The data base
generated by this survey is in public domain and can be accessed at www.finmin.
nic.in. One of the findings of the survey is that though different parts of
India behave differently when it comes to investing the money, however, fixed
income investments predominate in the preferences of savings instruments. The
survey also revealed that this particular saving behaviour is dependent on
different investment goals, such as, investment planning, planning for future
expenditure, planning for retirement purposes etc. There has been no comment
on the deficiencies of the depository system in the survey report. The number
of investor accounts in the National Securities Depository Limited (NSDL) was
64.74 lakhs in May 2005 as against 53.53 lakhs in May 2004. The number of
investor account with Central Depository Services Limited (CDSL) was 9.05 lakhs
in May 2005 as against 5.65 lakhs in May 2004.
(d): The objective of the Government and the Securities and Exchange Board of
India (SEBI) is to ensure that capital markets operate in an orderly,
transparent, safe and fair manner and that the interest of the investors are
protected. SEBI has taken several surveillance and risk management measures
for protecting market safety and integrity. SEBI keeps under constant watch
the developments in the capital markets in consultation with the stock exchanges,
depositories and other agencies for detecting and preventing any manipulation
and taking deterrent action.