Published on Tue, Mar 09, 2010 at 23:00 | Source : CNBC-TV18
Updated at Tue, Mar 09, 2010 at 23:07
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ASBA bidding option for QIBs on anvil
The Securities Exchange Board of India (SEBI) is in the process of introducing the bidding option for applications supported by blocked amount (ASBA) for qualified institutional bidders (QIBs), reports CNBC-TV18.
The Securities Exchange Board of India (SEBI) is in the process of introducing the bidding option for applications supported by blocked amount (ASBA) for qualified institutional bidders (QIBs), reports CNBC-TV18. The move will reduce the time gap to T+7 days by year-end. The current time gap for share allotment is T+22 days.
SEBI says it is not an opportune time to promote derivatives in over-the-counter (OTC) products. OTC derivatives are not permitted under the Securities Contract (Regulations) Act, 1956. "The financial crisis highlights the hidden risks in a non-transparent market. Globally, the architecture is being redesigned post the financial crisis," it stated.
The market regulator has allowed physical settlement of equity derivative contracts. Both the premier exchanges -- NSE and BSE -- are likely to work on feasibility and risk management for physical delivery. It is mulling options for feasibility of physical delivery in F&O contracts.
It may look at separate alternate window for physically settled derivatives, limit physical settlement on select securities, and provide choice of physical delivery to sellers.
The Securities Exchange Board of India (SEBI) is in the process of introducing the bidding option for applications supported by blocked amount (ASBA) for qualified institutional bidders (QIBs), reports CNBC-TV18. The move will reduce the time gap to T+7 days by year-end. The current time gap for share allotment is T+22 days.
