ANMI pitches for tax breaks to investors in capital market

Stock market participants have requested the government and the Sebi to provide tax benefits for investors in the primary market and consider issuance of certain bonds as a safety net mechanism in IPOs.

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".

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Amidst Sino-Indian bonhomie, the Tibet issue cannot be wished away

    Tibet did not figure in the three-day high-level meetings between India and the People’s Republic of China (PRC).

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>: Intertemporal choices

Intertemporal choice is the study of the relative value people ...

Parvez Imam

Why we all have blood on our hands

What does the Jammu and Kashmir flood make us think? ...

Dharmendra Khandal

The peculiar possibilities of animal poop

You can tell a lot about an animal by its ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture