Markets regulator Sebi plans to further tighten the regulations governing participatory notes amid persisting concerns that this route is being used for illicit fund flows.
The standing committee on finance wants minimum capital to be doubled to Rs 1000 Cr; terms existing fit & proper criteria as subjective.
The rupee closed at 59.11/USD; a five month high. It was largely due to the RBI's measures to tighten the liquidity in the market. It also paid high yields in its Rs 52 billion sale of bills.
Liquidity in the market is expected to become tight, which will lead to a fall of 10-15% in the market.