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Sebi begins meet to decide panel proposals

The board of capital market watchdog Securities Exchange Board of India began a meeting on Monday to consider the recommendations made by an expert panel on derivatives in August, an official said.

The board will also decide on the schedule of implementation and regulatory aspects of stocks futures, permission for which was granted earlier this month.

The official said the meeting was scheduled before the US attacks took place.

He said the discussions would include a review of market conditions, but would not say whether it would consider measures to arrest a stocks slide.

A wave of selling by foreign funds has dragged the benchmark 30-issue Bombay index down by 16 per cent in the four trading sessions since last Tuesday's deadly aerial attacks.

Fund managers fear that US retaliatory attacks on Afghanistan could cause instability in the South Asia region.

Data released by the market regulator showed foreign funds were net sellers of shares worth $24.3 million in September 1-13. The funds had been net buyers through 2001, with total purchases of shares of $2.6 billion, sharply higher than 2000's $1.5 billion.

In August a Sebi panel recommended allowing foreign funds in all derivative products, permitting limited short sales by institutions and ushering in margin trading.

Sebi approved one of its recommendations earlier this month and allowed futures trading in 31 individual stocks.

The Business Standard newspaper said on Monday the regulator is also likely to relax the norms for corporates to buy back their own shares.

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