Sebi would soon have a meeting with foreign institutional investors (FIIs) and custodians on the issue of imposing margins on trades undertaken by the institutional investors effective from April 21. The regulator would try to resolve the concerns of the institutional participants on the issue in the said meeting, CB Bhave, chairman, Sebi said.
On the sidelines of a conference on India-Hong Kong financial sector co-operation, organised by the National Stock Exchange (NSE), Bhave told reporters that the deadline for the enforcement of the margin trading is unlikely to be extended from the scheduled date of April 21. “However, we will certainly listen to all the concerns of the institutional investors and custodians as we go ahead. We will soon have meeting in this regard”, he said. However, he did not reveal the date of the said meeting.
It may be mentioned here that the regulator has decided to impose margins on all the trades carried out by the institutional investors from April 21 to bring parity with the retail investors. The institutional investors have sought the extension of the deadline and asked the regulator to introduce the new norms in a phased manner.
In reply to a question, Bhave said that the integration of Indian market with the Asian market is taking place faster. The Indian regulator has already made the draft regulation on the Indian Depository Participants (IDRs) public. However, the response on the said guidelines is not encouraging. Sebi will smoothen the process of the finalisation of the guidelines on the IDRs, he said.
Earlier, while addressing the global players participating in the conference, Bhave said that Indian corporates are getting listed and traded in the overseas market. He said that Sebi would look into the issue of the cross border listing favourably. “Cross border listing between Hong Kong and India can also take place. It will benefit both the markets”, he said.
He said that the old model of entering into the relationship of the developing markets with the developed markets like USA is changing fast. “Lot of change is taking place and now the co-operation within Asian market is taking place”, he said. Speaking on the occasion, Ronald Arculli, chairman, Hong Kong Exchanges said that both Indian and Hongkong markets could enter into a relationship with mutual benefit. Both the markets have unique products, which they can exchange, he said.
