Disclosing this in Bangalore on Monday, Sebi chairman DR Mehta added that the mutual funds market is going to witness further growth. ``Domestic mutual funds are likely to mop up Rs 45,000 crore during the current fiscal. Indian mutual funds have already raised Rs 25,800 crore till October 1999. Two years back, India had only a Rs 13,000 crore MF market, while during 1997-98 the same was Rs 22,000 crore,'' Mehta said at an interactive session held by the Greater Mysore Chamber of Industry (GMCI).

Internet trading would soon be introduced at all the major bourses, whereby investors would be able to place buy/sell orders through the broker's terminal. Initially, the Net would act as a substitute for fax or telephone. This would speed up the process and offer full transparency of the transaction to the investor.

He said the market watchdog would come out with its report on corporate governance later this month. The report would emphasis on regulations on the structure of board of directors, major function of directors, setting up of audit committee, accounting policies and inter-related and related party transactions.

Sebi is also setting up a committee which will frame guidelines to regulate venture capital funds in the country. ``The draft paper is likely to be finalised within a month's time,'' he said.

Regarding derivative trading, the Sebi chairman said: ``The parliament has already passed resolutions to this effect and we are planning to put this in place by March-end. Initially, we will allow leading players to conduct transactions worth Rs 2 lakh,'' he added.

Mehta said the regulator had earlier planned to set up a branch office in Bangalore. The same has been delayed now, on account of the dismal market conditions. ``We will, however, conduct board meetings in Bangalore,'' Mehta said.

The measures initiated by Sebi recently had brought about several major changes resulting in investors protection to the levels of international standards. The US was the only other market better than India, he added.