Sensex crosses 19000-point mark againNovember 14th, 2007 - 2:54 am ICT by admin
The Sensex touched a high of 19,276 levels in intra-day deals.
The SEBI, India’s stock market regulator, on Thursday, said it would go ahead with planned curbs on the use of an investment route by unregistered investors overseas.
Initially, investors seemed cautious ahead of SEBI’s board meeting onhursday to decide on restrictions on P-Notes amid reports that the Reserveank of India (RBI) has reiterated its earlier stance of a complete ban on P-Notes. Activity, however, was picked up as investors continued to roll over positions to next series indicating the market’s bullish undertone.
The buoyancy in the markets on Friday was accounted for by the buying spree of foreign and domestic funds in capital goods and metal segments resulting in the 30-share index, Sensex, gaining 276.23 points to climb over 19,047.12, a record peak set on October 14.
SEBI has said it wants to limit the use of participatory notes (P-Notes), which it says allow foreigners to make a backdoor entry into the market without registering. It wants foreign portfolio investors to register so it knows the source of funds coming into the country.
“The way SEBI chief yesterday announced, the market has reacted positively, even the FII. Because as he mentioned, yesterday that many of the foreign investors have submitted their forms for registration. This is a very good step that the SEBI chief has taken,” said Siddhart Kuanwala, an investor.
The benchmark Sensex surged as investors engaged in hectic buying on the Bombay Stock Exchange and shares of Tata Steel and ICICI Bank registered sharp rise.
India’s stock market regulator tightened investment rules for unregistered foreigners as expected on Thursday by clamping down on issuance of indirect investment notes to stem inflows of anonymous money.
Analysts thought in the long run the new rules would not deter foreign funds from the world’s second fastest-growing economy after China, especially as the SEBI has pledged to speed up registration of foreign institutional investors (FIIs).
“Yesterday, the meeting held with SEBI was a positive one because they announced that they are not against the FIIs coming in. SO, as the news came in, it has been seen that many FIIs ate registering,” said Vikas, another investor.
P-notes are issued by foreign institutional investors (FIIs) registered in India to unregistered overseas investors. Registered FIIs buy Indian securities and issue the notes based on the underlying asset. (ANI)
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Tags: backdoor entry, bombay stock exchange, bullish undertone, cautious, domestic funds, foreigners, hectic, icici bank, indirect investment, investment notes, investment rules, market regulator, nifty, portfolio investors, s board, sebi chief, sebi india, sensex, stock market, tata steel