ANMI pitches for tax breaks to investors in capital market
Jan 06 2014 , New Delhi
The suggestions have been made by the Association of National Exchange Members of India (ANMI).
According to the association's President RMCV Prasada Rao, tax incentives need to be provided to bring in more investors into the capital market.
Besides, he said some kind of convertible debentures should be issued by companies as a safety net in initial public offering (IPO).
"Optional fully convertible debentures/warrants should be given to investors which after a specific period can either be redeemed by investors or converted to shares at pre-defined interest or cut off price," Rao said here today.
In this regard, ANMI has also written to market regulator Securities and Exchange Board of India (Sebi).
Recently Sebi Chairman U K Sinha had said the regulator was looking at allowing firms to issue convertible debentures to raise money through IPOs.
ANMI would organise its annual international convention here on January 10 and 11. The event would discuss various topics including challenges faced by stock markets and regulators.
Talking about financial products in the market, ANMI alternate president Nareash Maheshwari said that some products in the markets are not tradebale and require to be "fine-tuned".