Mutlilateral bodies will soon be permitted to raise funds from the Indian markets by issuing debt securities, which will be listed on the stock exchanges, G N Bajpai, chairman, Securities and Exchange Board of India, said.

"The government has granted permission to the Asian Development Bank and International Finance Corporation, a part of the World Bank group, to raise rupee loans from the Indian market. The detailed guidelines will be issued soon," Bajpai said. The proceeds of the funds will be required to be used in India.

Speaking on the occasion of laying the foundation for Sebi's proposed new headquarters in the Bandra-Kurla Complex in Mumbai, Bajpai said: "These multinational organisations are not corporate bodies and hence would get relaxation in meeting certain corporate governance norms since this would not harm investors' interest in any manner."

Finance Minister Jaswant Singh, after laying the foundation stone said: "India should become a regional hub for financial services and constantly engage in new activities to sustain economic growth." Singh also emphasised improving the financial sector to provide services to the entire region.

Indian business and finance community has a natural flair to deal with money and capital markets and people working in this sector should go out in the world to grab opportunities, Singh said, adding, "(The ) government will provide all support to this endeavour".

Citing the example of Surat, which was once a thriving banking centre, Singh said those involved in trade had perfected the 'hundi' (traditional financial instrument) system.

On the growth of Indian economy, he said "Our growth must never stop and we must continuously engage in new activities".

The system should not be the victim of destiny and instead become a catalyst for change, he added.

Bajpai said the market regulator has prepared a four-pronged strategy, including revamping the organisation and establishment of a data centre, to bring the Indian capital markets to global standards.

On the creation of centralised database for the domestic capital markets, Bajpai said the National Securities Depository is helping Sebi to create a database, which is expected to go live from December 1, 2003.