Robust stock markets luring investors
Stock market benchmark Sensex touched a life-time high of 21,206 points last month. Despite volatility, the index generated 47% returns in 2007.
By TNN |
The National Common Minimum Programme of the UPA states that the government will be committed, through tax and other policies, to the orderly development and functioning of capital markets that reflect the fundamentals of the economy. Financial markets will be deepened, FIIs to be encouraged while speculative capital flows will be reduced, it says.
Fiscal 2007-08 saw a large number of activities on this count. Stock market benchmark Sensex touched a life-time high of 21,206 points last month. Despite volatility, the index generated 47% returns in 2007. Market regulator SEBI took the crucial decision of imposing restrictions on participatory notes in order to bring more transparency into the markets.
Taking forward the NCMP objective, the finance minister had announced a series of measures in the 2007-08 budget. The permanent account number was made the sole identification for all participants. Sebi followed it up to turn it into a reality. The decision not only makes it easier for investors who do not have to remember multiple identification numbers, but will also bring transparency into the market.
To deepen the market, the FM announced that short-selling by institutions will be allowed. Short-selling will allow an investor to trade in securities without owning them. Individuals have been allowed to own a slice of global equity market through mutual funds.
SEBI has also brought out a consultation paper on self-regulatory organisations for different market participants, in keeping with the announcement in Budget.
Fiscal 2007-08 saw a large number of activities on this count. Stock market benchmark Sensex touched a life-time high of 21,206 points last month. Despite volatility, the index generated 47% returns in 2007. Market regulator SEBI took the crucial decision of imposing restrictions on participatory notes in order to bring more transparency into the markets.
Taking forward the NCMP objective, the finance minister had announced a series of measures in the 2007-08 budget. The permanent account number was made the sole identification for all participants. Sebi followed it up to turn it into a reality. The decision not only makes it easier for investors who do not have to remember multiple identification numbers, but will also bring transparency into the market.
To deepen the market, the FM announced that short-selling by institutions will be allowed. Short-selling will allow an investor to trade in securities without owning them. Individuals have been allowed to own a slice of global equity market through mutual funds.
SEBI has also brought out a consultation paper on self-regulatory organisations for different market participants, in keeping with the announcement in Budget.
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