New Delhi, June 05: The Federation of Indian Stock Exchanges (FISE) today proposed a slew of measures including weekly settlement, suspension of book building, hike in the capital base of companies and public holding, for making the sparcely traded stocks more attractive. In its report submitted to the Securities and Exchange Board of India, chairman G N Bajpai, FISE president Vijay Bhushan stressed on the "market making" process to boost trading volumes of stocks whose trading was thin or negligible.
FISE set up a committee headed by M R Mayya, chairman of the Inter-Connected Stock Exchange (ISE), to suggest ways to to generate liquidity in sparsely traded shares so that it could be forwarded to Sebi for further action.

Mayya recommended that illiquid shares should be closely monitored and in cases of suspected manipulation, proper investigation should be carried out and penal action be taken against erring companies.
Financial incentives like exemption of transaction levy on deals relating to market-making and equal sharing of income earned by stock exchanges and market makers on transaction levy, he said. Bureau Report