The Sebi Board, which met in Mumbai on Thursday has decided to allow short-selling by financial institutions. It has decided that short-selling will be allowed, exactly as outlined in the Budget."Post the Budget speech, discussions have already taken place with both the exchanges. The exchanges have indicated a state of readiness to push this through. I don't imagine two months time will be taken to get this started," says M Damodaran, Chairman, Sebi.
The Board of the stock market regulator has also approved a proposal to make grading of Initial Public Offers mandatory. This will be done by the introduction of a simple grading product. The Board has also decided that IPO grading fees will be borne by the companies themselves and not by the investor protection fund. Sebi Chairman M Damodaran says the grading system will evolve over a period of time to cover all public issues by companies, and not just IPOs.
Damodaran also says that the Board has decided to tighten the disclosure norms relating to real estate IPOs.
"Land bank retails must be accompanied by ownership status, agreement to purchase. In other words, there must be evidence that the land bank is indeed a land bank and not a projection that is not rooted in reality; where there is only agreement to develop land, there must be complete disclosure of details including existence if any of any revocation clause. All such agreements are to made available for inspection," adds Damodaran.
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