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Introduction
Economic Situation
Key Objectives
Agriculture
Housing
Infrastructure
Small Scale Industry
Science & Technology
Banking
External Sector
Capital Market
Expenditure Management
PSU Reform
Revised Estimates
Budget Estimates
Indirect Taxes
Custom Duties
Direct Taxes - A
Direct Taxes - B
Closing StatementBudget 1998-99
Budget 1997-98
Budget 1996-97
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Capital Market
 | A vibrant capital market is essential for providing the much-needed funds
for our infrastructure sector. Infrastructure projects need long term funds, which, in
turn, require a deep and well-functioning debt market. With a view to modernising the debt
market and introducing paperless trading in this segment also, Government proposes to
abolish stamp duty on transfer of debt instruments within the depository mode. |
| Lately, there has been considerable debate on the importance of good
governance of Indian corporates. It is increasingly being realised that if investors have
to be drawn back to the capital market, companies have to put their houses in order by
following internationally accepted practices of corporate governance. This is necessary to
enhance investor confidence. To help promote this trend, I propose to institute a National
Award for Excellence in Corporate Governance. |
| The Deepak Parekh Committee appointed by the UTI has made wide-ranging
recommendations, including for restructuring of the US-64 scheme and for granting tax
incentives. We are taking necessary action. I will come to the tax incentives shortly. The
details of the restructuring are being announced separately in a press release. This
should lift the cloud of uncertainty from the capital market and restore confidence. |
| My tax proposals will also greatly strengthen mutual funds and thereby
help bring small retail investors back into the capital market. It has also been decided
to set up a joint mechanism between SEBI and the Department of Company Affairs for taking
stringent action against unscrupulous promoters who raise money from investors and
misutilise them. |
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