'Too early to assess impact of SEBI’s P-Note move'
Finance Minister P Chidambaram said the Govt is mulling measures to moderate inflows without hurting investment, reports Vyas Mohan.business Updated: Oct 27, 2007 03:58 IST
Indian equities were back to their record-breaking run on Friday with the benchmark Sensex of the Bombay Stock Exchange and the broader Nifty of the National Stock Exchange scaling new peaks after market regulator Securities and Exchange Board of India (SEBI) allowed more foreign funds into the domestic market.
The Sensex firmed up by 2.52 per cent, or 472.28 points, to end at an all-time high close of 19,243.17 points. The 50-share Nifty closed at 5702.30, up by 2.39 per cent, or 133.35 points.
Finance Minister P Chidambaram said that the government was mulling measures to moderate inflows without hurting investment. “Without hurting investments, we would like to take some measures to moderate inflows. Some measures have been taken by SEBI.
We have to wait and see their impact,” Chidambaram said.
SEBI Chairman M Damodaran said on Thursday that pension funds, charitable institutions, foundations and university funds would be able to register in India. The regulator also scrapped offshore securities linked to derivatives, confirming an earlier proposal that sparked a slump in shares, wiping out $120 billion from the market in a minute last week.
Sandesh Kirkire, CEO of Kotak Mutual Fund, said: “The markets have gone up for obvious reasons. Following Sebi’s decision, fund flows may not be affected by a ban on participatory notes issued with derivatives as underlying.”
The market witnessed renewed buying interest in index pivotals following a healthy rollover of derivative positions from October 2007 to November 2007 on Thursday, amid mixed global cues.
First Published: Oct 26, 2007 17:59 IST