MUMBAI, August 11:The Sebi board which is meeting in Mumbai on Tuesday is likely to take up a range of issues - including a new carryforward system - relating to the capital market. Among the other main items on the agenda are a review of the regulations for mutual funds, merchant bankers and the primary and secondary markets.

The Varma committee had proposed a market-firendly badla system with lower margins and relaxation in limit.

The mutual fund regulations are being reviewed with the intention of further finetuning them. Sebi will be placing before the board, the suggestions that have come from the Association of Mutual Funds in India, with regard to the level of business to be conducted with associate firms, brokers, composition of the AMC board, freedom to alter schemes without unitholder consent on condition of an exit route among other things.

The review of merchant banker regulations will entail issues like the separation of fee and fund-based activity of merchant bankers (a suggestion that has cropped up in the wake of the CRB issue), an increase in the networth of the category I merchant bankers from Rs 5 crore to Rs 15 crore and a possibility of doing away with the categories altogether and the question of intermediary related disclosures in the offer documents.

In the primary market regulations, Sebi will present to the board the consolidated guidelines and also the on-line allotment proposal for new issue offerings that has been proposed by the Over the Counter Exchange of India and the NSE. Besides for the secondary market, the agenda also includes the crucial changes suggested by the Varma committee for the carry forward system.Badla buoys marketĪMUMBAI, August 11: Scrips like ITC, Reliance Capital, Tata Tea, BHEL, BPCL and GSFC touched a new 52-week high on Monday at the Bombay Stock Exchange as reports of the return of the market-friendly badla gained currency.

The sensex jumped 83.76 points to close the day at 4,481.30. During the intra-day trading the index touched a high of 4,482.51.

On the NSE, however, the mood was a bit subdued. The NSE-50 gained marginal 1.40 points when it closed at 1,258.35, from 1,256 recorded on Friday last. The day witnessed heavy speculative buying and fresh support from foreign institutional investors (FIIs) on the first day of the new account period.

The market shrugged off the three-day negative run as investors entered into fresh commitments making purchases of shares with no delivery period. They also broad-based the rally by stepping in to purchase group B1 and B2 shares.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.