Mumbai, Aug 20: Sebi’s secondary market advisory committee (Smac) has recommended that a scheme permitting banks and RBI registered non-banking finance companies (NBFCs) to fund margins trading should be introduced immediately. The short sales should be regulated through a sound and efficient securities lending and borrowing mechanism (SLBM), which would involve borrowing of securities by the clearing corporation/house for meeting settlement shortfalls, the Sebi panel headed by RH Patil said in its report to the market regulator.
Smac would continue to deliberate on issues concerning secondary market and make recommendations on them later. The short sales should be monitored at the time of delivery, Sebi added. Bureau Report