Friday, February 18 2005 14:46 Hrs (IST) - World Time -

Mumbai: Expressing an optimistic view on the state of Indian stock market, the new SEBI (The Securities and Exchange Board of India) Chairman M Damodaran said there was a scope to improve regulation and institutional mechanism to protect interest of investors.

Soon after his arrival to the financial capital of the country from New Delhi, Damodaran termed his new assignment as the head of capital market watchdog SEBI as "challenging".

Asked about the room for improvement in regulation and organisation (SEBI), Damodaran, who played crucial role in turning around Unit Trust of India (UTI), said there is always scope to improve institution and system, he told sources in Mumbai.

However, it was too early to speak about specifics before studying issues and taking charge, he said.

Damodaran was appointed SEBI Chairman last night in place of G N Bajpai, who is retiring today after a three-year stint.

He is expected to take charge later in the day. Referring to his current assignment as Chairman and Managing Director of Industrial Development Bank of India, Damodaran said he would handover charge to the senior most executive of the banking entity.

The merger of IDBI bank with IDBI and business growth would move ahead as organisation has pool of quality talent, he added.