The government on Thursday proposed a series of measures to broaden and deepen the capital markets as well as to strengthen the regulatory regime.

Presenting the 2004-05 General Budget, Finance Minister P Chidambaram said it was proposed to make the procedure for registration and operations simpler and quicker for foreign institutional investors and to raise investment ceiling for FIIs in debt funds from $1billion to $1.75 billion.

Banks with strong risk management systems will be allowed greater latitude in their exposure to the capital market, he said.

In addition, an alternative trading platform is proposed to be created for small and medium enterprises to raise equity and debt from the capital market and steps would be initiated to integrate the commodities and securities markets, Chidambaram said.

Reserve Bank of India and Securities and Exchange Board of India will announce the necessary measures regarding these, he said.

The finance minister also proposed to examine and implement the recommendations of an inter-ministerial committee for liberalisation of FII limits in certain specified sectors in consultation with the ministries concerned.