Market regulator Securities and Exchange Board of India will meet on Thursday to firm up proposals to check unregulated entities investing in Indian capital markets, even as 20 such agents offered to invest money through the front door.
"I cannot guess what will happen tomorrow. The board will meet and take a final decision," Sebi Chairman M Damodaran said in the national capital.
The regulator had in a discussion paper proposed curbing issuance of Participatory Notes -- a move which had sent the stock market into a tailspin last week.
However, Finance Minister P Chidambaram has already indicated that the Sebi proposals would become regulations "with or without modifications."
Damodaran too had hinted on Monday during an interaction with FIIs that the proposals would become regulations, saying: "We believe that responses we have on board at this point in time, are adequate for us to take the process forward, in terms of the inputs received and those that we might receive." Sebi, had on Monday, given sub-accounts issuing P-Notes 24 hours to convey their willingness to register as Foreign Institutional Investors.
The move to take them on board as FIIs is aimed at checking the