The Sensex exhibited high volatility in early trades. After opening with a positive gap of 53 points at 18,824, the index tumbled into red to a low of 18,630. The index rebounded sharply and rallied to a high of 19,047 – up 417 points from the day’s low.
The index is now up 269 points at 19,040. The NSE Nifty is trading at 5,645, up 76 points.
Reliance Energy Tata Steel have surged over 3% each to Rs 1,699 and Rs 1,020, respectively.
Market regulator SEBI announced new rules to regulate foreign investments through instruments like Participatory Notes.
The rules, to be effective from Friday, include no fresh issuance of P-Notes in derivatives as also winding up existing positions in 18 months, besides curbs on such instruments in the spot market.
Ending the debate on the issue, SEBI Board considered the proposals this afternoon and virtually retained all the clauses that the market regulator had put up for public comments last week.
SEBI had taken the views of FIIs on board following a suggestion from Chidambaram. In derivatives, Foreign Institutional Investors (FIIs) and their sub-accounts cannot issue fresh P-Notes and will have to wind up their current position in 18 months, he said.
In spot market, FIIs will not be allowed to issue P-Notes more than 40 per cent of their assets under custody. The reference date for calculating such assets will be September 30, SEBI said.
All’s well that ends well. The cliche holds true for what is now India’s biggest real estate company DLF, which listed on the bourses last week. Soon after listing, the company became the eighth most valuable in the country and its promoters,K P Singh and family are now the fourth wealthiest Indians behind the Ambani brothers and Sunil Mittal. But people who followed the issue carefully know it was one of the most tumultuous IPOs in recent times.
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Right from the time the issue was conceived in the first quarter of 2006, it was plagued by controversy. There was intense speculation that a company with significant interests in real estate did not want DLF to get big money from the stock markets.
~TECH-BYTES~ ~IT's My L!Fe~
