Wednesday, March 7, 2007

Budget 2007 - Capital Markets


• PAN to be made sole identity for participants in the security markets to strengthen capital market.


• Indian Individuals to be allowed investment in overseas capital markets through mutual funds. A rationalized regulation to be in place enabling overseas investment by Indian Individuals through Mutual Funds. For this purpose, Mutual Funds to set up dedicated Infrastructure Fund Schemes.


• Institutions permitted to allow Delivery-based short selling and securities lending and borrowing to facilitate delivery.


• Self Regulating Organisations concept to be introduced by SEBI for different market participants.


• Enabling mechanism to be put in place to permit Indian companies to unlock a part of their holdings in group companies for meeting their financing requirements by issue of Exchangeable Bonds.


• India Infrastructure Finance Company Ltd. to establish two wholly-owned overseas subsidiaries, which would borrow from RBI, invest in highly rated collateral securities, and provide ‘credit wrap’ insurance as well as loans to Indian infrastructure projects.


 

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