SBI Chairman for Tracking of Funds Raised by Small Biz

STATE BANK OF India chairman CS Setty on Friday pitched for the creation of a market infrastructure institution to track the end-use of funds borrowed or raised as equity by small businesses.

- PRESS TRUST OF INDIA

A "viable mechanism" is needed to ensure that funds are used for intended purposes, Setty said amid heightened concerns over end-use of funds.

"We will require a viable mechanism to track the actual use of these funds to ensure that funds are utilised for the purposes they have been raised for, probably through the establishment of a separate market infrastructure institution with powers to track the use of borrowed funds or funds raised through equities," Setty said.

Addressing a conference organised by Sebi-promoted NISM, Setty said the creation of such a platform will provide comfort to lenders as well as investors, and make pricing more competitive.