Make equity market a place for saving money

The reforms in Capital market is long over due. The equity market should transform itself as  

an important source of savings for middle class and lower middle class and for this at least 50%of the equity should be reserved for retail investors.The corporates should introduce incentives to retain retail shareholders by giving them loyalty bonus or  special dividend if they retain the shares for than a minimum number of years.As far as possible, the corporates should attempt to give a dividend at least equivalent to SB rate of interest. STT should emerge as a tool to attract retailers to capital market, to contain speculation and volatility and a source of revenue to the government. The move to replace tax on short term gain with STT is really excellent as it will help to raise revenues to  the Government automatically and compliance by shareholders would be far better.A lot can be done and needs to be done to make equity market a source of easy savings and capital formation keepinng it a healthy and desirable place to participate.

Dr.T.V.Gopalakrishnan