Said Vijay Kalantri, president, AIAI, ``restrictions on imposed on bank loans against shares and debentures should be removed. Ten per cent of insurance, pension and provident funds should be permitted to invest in private equity and debt.'' The money could be invested in mutual funds created specifically for infrastructure projects appraised by the Power Finance Corporation of India and financial institutions, the memorandum has suggested.

Kalantri has also asked the government to give speedy approval for buyback of shares, and allow issue of non-voting shares. Regarding buy-back of shares, the memorandum said it should be permitted even if itwas for treasury stock purpose.

The other recommendations include extending the powers of mutual funds to allow voting rights and amending the Companies Act to permit them to hold shares. Dividend from mutual funds should also be exempted from income tax and charitable trusts should be permitted to invest in them. ``Securities allotted under employee stock option schemes should also be exempted from tax. The stock option scheme should not be restricted to software companies,'' Kalantri said.

Capital gains tax should be brought down from 20 per cent to 10 per cent at par with that levied on FIIs and non-resident Indians, it added.