Millennium Post

SEBI to take up further reforms: FM

Finance Minister P Chidambaram on Friday said the market regulator Securities and Exchange Board of India (SEBI) is expected to announce fresh market reform measures next month, even as he favoured encouraging more people to invest in financial instruments rather than in gold.

Expressing satisfaction over wide-ranging reforms announced by SEBI on Thursday for mutual funds and other segments, Chidambaram said he has requested SEBI Chairman U K Sinha to look into a number of other suggestions for the benefit of investors.

‘The examination by the Government and SEBI is likely to be completed in the next two weeks. I have requested SEBI chairman to schedule another meeting of the (SEBI) board in early September when some more decisions can be taken on the suggestions that are under examination,’ he said.

The finance minister said the measures announced by SEBI on Thursday ‘will stimulate financial savings among households as well as give a fillip to the mutual fund industry. More and more households should be encouraged to save in financial instruments rather than in gold’.


Market regulator SEBI has allowed seven Alternative Investment Funds (AIF) to set shop in the country under a newly formulated route, which allows pooling of funds for investments in areas like real estate, private equity and hedge funds. The approval has been given to all the seven AIFs by the SEBI in a period of less than one month, as per the information available with the market regulator. SEBI had notified its guidelines in May for AIFs, which are funds established or incorporated in India for the purpose of pooling in of capital from Indian and foreign investors for investing as per a pre-decided policy. As per SEBI data, six AIFs have got registered with the regulator during August 2012, while one was granted registration on 23 July. SEBI on Thursday decided that the promoters of listed companies can offload 10 per cent of equity to AIFs such as such as SME Funds, Infrastructure Funds, PE funds and Venture Capital Funds registered with the market regulator to attain minimum 25 per cent public holding. The seven AIFs that have got registered with SEBI include IFCI Syncamore India Infrastructure Fund, Utthishta Yekum Fund, Indiaquotient Investment Trust, Forefront Alternate Investment Trust, Excedo Realty Fund, Sabre Partners Trust and KKR India Alternate Credit Opportunities Fund.
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