Sebi to lift ban on short sales
Mumbai: The capital markets regulator, Securities and Exchanges Board of India (Sebi) has decided to lift the ban on short sales from 2 July 2001. The ban was introduced following the crash in the stock markets after the recent budget.

Sebi also plans to introduce a rolling settlement system for over 260 stocks after its board ratifies the same at its next meeting. According to market watchers, it is likely that with the lifting of this ban the proposed ban on deferral products too will be pushed through in the Sebi’s next board meeting.

According to Sebi member, Prof JR Varma: "After the introduction of rolling settlement on the bourses, we feel these two restrictions may not be required and, therefore, the restrictions are proposed to be removed. The removal of the restrictions would allow the market operators to borrow and deliver the shares as is also required under the rolling settlement system."
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Rathi pleas against Sebi regjected by High Court
Mumbai: Former BSE president, Anand Rathi, suffered a major setback when the Mumbai High court rejected his plea against an order passed by the Sebi banning him and his four firms from trading on the stock exchange on the grounds of insider trading.

This decision is a landmark decision for it is the first time that Sebi’s role in banning stock brokers for flouting its guidelines has been upheld by any court of law.

IT is expected that Rathi will appeal against the judgement to the Supreme court.

The court ruled that Sebi was well within its powers to issue such a ban in emergent situations and also opined that the regulator was not required to give any pre-decision hearing to the aggrieved broker.

While Sebi has assured the court that the ongoing investigations into the insider trading charge against Anand Rathi would be completed at the earliest, the ban would continue.

Sebi argued that there was no question of following principles of natural justice because due to Mr Rathi’s alleged actions, investors’ confidence had been shaken.
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End-of-day profit taking lowers sensex
Mumbai: Initial modest gains in the market were lowered when operators booked profits on the expectation that the recent ban on short sales would not be lifted by Sebi.

At the National Stock Exchange, however, the sentiments were different yesterday being the first day of the new settlement period.

The Sensex closed with a marginal gain of 19 points while the S&P CNX Nifty gained almost 12 points at the end of the new session.

The sensex which opened at 3,565.53 and rose to the intra-day high of 3,586.64 fell back to close at 3,538.42 as against Monday’s close of 3519.16 — a small rise of 19.26 points.

At the NSE the Nifty closed 1,137.20.

Early rally on the bourses was also aided by a stocks upsurge on the Wall Street for the third session in a row and due to the better performance of the Nasdaq.
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