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Don’t invest in Gold : Chidambaram

New Delhi, Aug 18 (): Finance Minister P Chidambaram has said that more and more households should be lured away from gold to save in financial investments and his ministry will decide on Sebi’s recommendation to provide tax benefits to equity under the Rajiv Gandhi Equity Savings Scheme, which was announced in 2012-13 Budget.

This comes soon after capital market regulator Sebi announced various measures to revive investor interest in mutual funds and the primary market. Finance minister P Chidambaram promised reforms and initiatives next month to boost investments in financial instruments.

Chidambaram said that there are a number of other suggestions which are under consideration by the government and he requested to schedule another meeting of the Sebi board in early September when some more decisions can be taken on the suggestions that are under examination.

He was confident that the reform measures by Sebi for mutual funds and other segments would increase financial savings among households besides giving boost to the mutual fund industry. Sebi chief U K Sinha is to look into a number of other suggestions, said the minister.

Sebi had yesterday announced various steps for expanding the reach of IPOs and mutual funds through measures like electronic public offers
across the country.

Without elaborating on the specific suggestions made by the government to the market regulator, Chidambaram said examination by the government and Sebi is likely to be completed in the next two weeks.

Chidambaram in his first statement as FM said that the government could attract more people to invest in mutual funds, insurance policies and other well-designed financial instruments for which it would announce decision in the next five years.

Market analysts feel that decision of the market regulator Sebi to allow e-IPO or electronic issuance of IPO is likely to provide a momentum to the primary market and increase retail participation.