Massive sell-off in Zee Telefilms, pulls sensex down
Mumbai: The inclusion of highly volatile stocks in the BSE sensex, once again swung the market index beyond expectations. Despite a smart recovery on Tuesday, a sell-off by foreign institutional investors in the Zee Telefilms counter dragged the Sensex by 120 points or 2.62 per cent down to 4,458.

The BSE Sensex, which opened steady at 4,593.38, lost ground on massive selling wherein the Sensex dipped to a low of 4,449.89 before settling at 4,458.40 with a loss of 120.09 from its previous close of 4,578.49. The NSE CNX Nifty opened at 1,380.40, hit a high of 1,391.35, a low of 1,359.65, only to end the day at 1,363.15, weaker by 15.40 points. The markets turned nervous once again, with declines leading advances in the forward group by a big margin, 107 to 30 at the BSE.

The crash in Zee, had its impact on other stocks such as Himachal Futuristic Communication, Global Tele, Satyam Computers and Reliance Industries, which took a battering on the bourses.
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Sebi may allow mutual funds and pension funds to invest in VCFs
New Delhi: The Securities and Exchange Board of India (Sebi) is considering allowing mutual funds, pension funds and banks to invest a portion of their corpus in venture capital funds. While there is no indication of the exact quantum of funds that can be invested by mutual funds in venture funds, market sources say that they may be permitted to invest up to 10 per cent of their corpus in Sebi-registered venture funds. This 10 per cent limit will be a ceiling within which individual mutual funds may be allowed to have their own prudential limits. The move will give retail investors the opportunity to participate in high-growth enterprises through the institutional mechanism of mutual funds.

Besides, Sebi is in talks with the Reserve Bank of India to allow foreign venture capital investors to invest in India through the automatic route, in order to provide a hassle-free investment climate for them and boost availability of funds for new ventures.

Currently venture funds are largely funded through institutional investors like banks, financial institutions and pension funds, because the venture funds are typically invested for larger periods of time of 5 - 10 years.
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