MUMBAI, May 16: The directive issued by the Securities and Exchange Board of India (SEBI) to various stock exchanges ``asking them to direct their members to collect certain particulars about their clients by May 31, 1997 is in several respects irrelevant, uncalled for and even shocking.''

According to a statement issued by the All India Association of Industries (AIAI), ``many investors have virtually deserted capital market because of SEBI's inability to discharge its statutory responsibility to protect investors and develop the capital market on healthy lines.''

``We have no doubt many more genuine investors will continue to leave the market if SEBI insists on compliance of its circular sent to the stock exchange on April 11, 1997,'' AIAI said.

``Most of the borkers do possess essential identities such as, the names, addresses, telephone numbers and other particulars of their clients. The matter can be left to them if they want any more additional information,'' AIAI president Vijay Kalantri said.

``It is rather amazing that SEBI wants them to seek irritating particulars not at all necessary to conclude business transactions.''

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.