The Telegraph
Calcutta, India
Sunday, February 19, 2006.


Sebi to set rules for real estate funds soon

New Delhi, Feb. 18: The Securities and Exchange Board of India (Sebi) today said it would soon come out with norms on real estate funds and allow short-selling by big investors.

“Last year, we came up with norms on gold exchange traded fund. This year, we will announce the guidelines for real estate funds,” Sebi chairman M. Damodaran said.

He said the norms would enable mutual funds to set up trusts to invest in real estate.

“One more introduction this year will be short selling by institutions. There will also be a system of stock lending and borrowing,” he said.

To attract foreign companies to raise funds from India, the market regulator is also considering a guideline for Indian depository receipts in line with ADRs and GDRs.

Sebi is also considering physical settlement of shares, Damodaran said at the Stya Paul annual lecture here.

Asking stock exchanges to be more vigilant, he said, “We have to ensure that the first-level regulations are carried out promptly. Next, we need to provide more products.”





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