The Hindu : Hedge funds may be allowed to participate in market

Online edition of India's National Newspaper
Saturday, Jul 06, 2002

Business

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Hedge funds may be allowed to participate in market

By Our Special Correspondent

MUMBAI JULY 5. The Securities and Exchange Board of India is planning to allow hedge funds to participate in the Indian capital market and increase the number of securities for stock options and futures.

Speaking at the launch of SEBI's web based Electronic Data, Information Filing and Retrieval System (EDIFAR), here today the SEBI Chairman, G. N. Bajpai, said the hedge funds would be allowed to participate in the capital market when the market is ready for it. Further, he said SEBI would increase the number of securities for stock futures and options. This is to develop the derivatives market and SEBI is planning to increase the list of securities for stock futures and options from the current shares of 31 companies. It is also pursuing for physical settlement of stock futures and options.

The SEBI has set up a web based EDIFAR through which listed companies would be able to electronically file their periodic disclosure reports. These reports are now filed by the companies in physical form with the stock exchanges where they are listed. The primary objective of the EDIFAR is to facilitate online filing of information of companies and this would expected to enhance transparency and assist in speedier dissemination of information for the benefit of all stake holders in the securities market.

Initially 200 companies comprising of BSE Sensex, S&P CNX Nifty, BSE 200 indices are included. They will have to file their statement by July 15.

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