Sebi sets panel on FI margins

Sebi sets panel on FI margins
ENS ECONOMIC BUREAU

MUMBAI, FEB 17: The Securities and Exchange Board of India (SEBI) on Thursday set up yet another panel - this time to consider margins on institutional trade. Following a SEBI board meeting to discuss imposing margins on institutional trade, SEBI chairman D R Mehta told reporters the market regulator had not taken a decision on the issue.

The meeting followed a SEBI announcement on Monday that it will consider imposing such margins to curb volatility. ``The issue was too complex to be decided in one day," Mehta said. Currently, FIs, mutual funds and FIIs don't pay margins on share transactions.

The panel will comprise representatives of three foreigninstitutional investors, two foreign mutual funds, the Unit Trust of India and the Association of MFs in India, two custodians, two foreign and two local broking firms, one representative each from the BSE, NSE and RBI and 3 SEBI officials.

Mehta said no time frame had been set for a decision to be taken. However, it is learnt that FIIs are against the idea of putting margins.