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Syed Firdaus Ashraf in Bombay

Transparency in the system was of utmost important to revive the stock market, according to Anthony Stranger Jones, managing director of Barclays de Zoete Wedd Limited. "If a shareholder wants to sell his share, he needs immediate delivery. Only if we have such a system will investors have confidence in the stock market," added the foreign institutional investor chief.

Jones was addressing a one-day seminar, 'Fingrowth: Financing India's Growth' organised by the Confederation of Indian Industries in Bombay on Thursday. The meet focussed on the new developments in the credit policy, foreign exchange management, capital and debt markets, and infrastructure financing, to meet the country's growth requirements.

Seconding him, John Moore, director & India head, Deutsche Morgan Grenfell, said that if the settlement of shares is quick, people will be encouraged to invest in the stock markets."

Commenting on India's potential for foreign investments, he pointed out that in the 1830s, India and China accounted for 60 per cent of world's gross domestic product. However, the industrial revolution changed the situation. "But if India implements its policies at the right time, it will be one of the major economies in the coming years," he added.

Moore further stressed on the book-building procedure and said that the quality information is essential to revive the market and improve growth in the country.

Earlier in the day, giving the inaugural speech, Industrial Development Bank of India Chairman and Managing Director S H Khan said it was necessary to deepen and widen the domestic debt market to finance growth in India. He also stressed on technological change in the capital market, adding that every corporate should remain aware of such changes.

Criticising the Indian attitude towards markets, Securities and Exchange Board of India Executive Director Vijay Ranjan said, "We Indians have a bad habit of trumpeting our achievements and loudly lamenting our bad deeds. If the market is not doing well, we talk so loudly that Bill Gates of Microsoft will start having heart problems. We need a standing task force to work in times of crises."

Pointing out the SEBI received 2.2 million complaints, he said with such figures we will never be able to attract the common man to Dalal Street (where the Bombay Stock Exchange is located).

National Securities Depository Limited Managing Director C B Bhave urged brokers to join the depository to ensure transparency. "Join the depository as early as you can. If corporates do that, they will benefit from the scripless trading," he said.

He pointed out that within one year nearly 85 companies have joined the depository.

Dr Basudeb Sen, executive director at the Unit Trust of India, insisted the capital market was not sick. "Today, the markets are much better than three years ago. Investors disappeared from the market after the crashes of '82, '87 and '92, but always returned. In the same way, sooner or latter, they will come back."

He asked that good aspects of companies also be highlighted to restore their confidence, and made a plea for electronic trading. "The investors difficulty today is not with happenings inside the market but outside. And that is in term of the paper work. So we need electronic transfer systems since we have a large number of investors," he said.

Expressing his concern on the problems of infrastructure facing the country, National Stock Exchange Managing Director Dr R H Patil, lamented that Indian act only during times of crises. "We acted in 1991 when there was financial crisis. So only if we have a crisis again regarding infrastructure will we act again,'' he said sardonically.

Continuing in the same vein, he said, "Today, our single window clearance has become an additional window. Fast track projects were launched but these are off the tracks today."