BANGALORE, Dec 16: The panel set up by the Securities and Exchange Board of India (SEBI) to look into the sources and utilisation of the Investor Protection Fund (IPF) and Investor Services Fund (ISF) has strongly recommended the constitution of service centres at all bourses.

Based on the discussions of the committee, the regulator has issued a directive to all bourses to set up such centres at the earliest. In its missive, SEBI says: ``At present, the constitution and management, sources and utilisation of funds with the IPF/ISF in various stock exchanges are based on norms prescribed by the bourses. As such there is neither uniformity nor consistency regarding the functioning of such funds. In addition, most of the investor centres are not fully equipped to provide investors with services including recording and counselling on complaints.''

The regulator adds, ``it is advised that opening/maintaining of service centres be implemented expeditiously to enable the investors to have a forum for recording and counselling of their grievances as well as access financial and other information of companies on government policies, rules, regulations, etc.''

As per the SEBI norms, all bourses should open at least three centres in accordance with the conditions stipulated while for major bourses it will be five. A list of the proposed/existing centres should be sent to Sebi immediately and a monthly progress report on the implementation should also be sent regularly.

The SEBI move is seen as a last-ditch effort by the regulator to woo the elusive investors. Though the bourses may have to cough up additional funds to meet the requirements for such centres, it is felt that the exchanges will reap the benefits later.

``The SEBI directive is a welcome one. As far as Bangalore Stock Exchange (BgSE) is concerned we have no problems. We have a full-fledged investor centre which confirms fully to the norms stipulated by SEBI. We have investor centres at Mysore and Davangere and will spread our wings to other areas soon,'' said Ramachandra, executive director, Bangalore Stock Exchange. The conditions laid down by the market regulator stipulate that all investor centres should have access to four financial newspapers with at least one in a regional language. Computer software which provides information about corporates including annual reports, general, financial and other important information should be made available to investors through computers. The bourses should also provide infrastructure facilities like telephone, photocopier, furniture, sitting space etc to investors.

The bourses should also recruit special staff for receiving/recording investor complaints and also offer counselling services. The status of the complaints should be maintained and updated in the computer system of the investor centre.

The centres will also provide the prospectus and application forms for forthcoming public issues apart from the published material of stock exchanges for investors.

Dummy terminals which display prices of scrips listed on the exchange on a real-time basis should be available to investors to watch price movements of scrips.y

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.