The Securities and Exchange Board of India has set up a committee headed by Cabinet Secretary K.M. Chandrasekhar which will look into a single route for all different categories of FIIs.

“We have been asked why there are different routes for FIIs to invest in India. We are looking at combining all these routes into one single route. For this, we have set up a committee for this purpose headed by K.M. Chandrasekhar,” said SEBI Chairman U.K. Sinha.

The SEBI chief also raised concerns about the decline in capital raising activities in the market.

PTI reports:

The capital market regulator said that guidelines to prevent flash markets crash like what happened on the NSE in October and protect the interests of investors will be in place within a few days.

“I expect the final guidelines to safeguard the interests of investors due to flash crashes in a few days,” SEBI Chairman U.K. Sinha told reporters at a CII-organised capital markets summit here, without elaborating further.

It can be recalled on October 5, there was a massive 900-point flash crash of the benchmark Nifty which wiped out nearly Rs 10 lakh crore of investor wealth.

Following the flash crash, trading was halted for about 15 minutes. A report of SEBI ordered probe is awaited.

The NSE claimed there was no technical glitch in its system and blamed the crash on erroneous orders worth over Rs 650 crore for multiple trades by broker Emkay Global in various stocks at low prices on behalf of an “institutional client’’.

The incident occurred on a day when expectations were high for an upward rally on bourses, following some big-ticket reform measures approved by the Government the previous evening, including on FDI in sectors like insurance and pension.

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