State Bank of India’s chairman CS Setty has proposed the establishment of a market infrastructure institution to ensure transparency in the end-use of funds borrowed or obtained as equity by small businesses. His statement comes amid rising concerns over the correct utilization of financial resources.
Setty highlighted the necessity of a ‘viable mechanism’ to track these funds, suggesting a separate institution with the authority to monitor fund usage. He addressed a Sebi-promoted NISM conference, emphasizing that such measures would reassure investors and sharpen competitive pricing.
Noting recent directives from the Reserve Bank of India, Setty stressed the importance of ensuring youth-sourced capital doesn’t end up in risky market segments, an issue seen in recent years. He projected an 8-9% GDP growth until 2036 to achieve a developed India by 2047, underlining the need for enhanced domestic savings and a robust capital market.
(With inputs from agencies.)