Sebi to launch new products in stock market

Securities and Exchange Board of India said on Wednesday it would introduce new products and frame regulations in the securitisation market by December.

The market watchdog along with other regulators is developing bond markets and the current limit on foreign participation in the this markets will move away as the market develops in the next 12 months, said Sebi Chairman M Damodaran.

"There are limits on foreign participation in bond markets at this point of time. You will see that moving away as the market develops," Damodaran said while participating in a panel discussion at Fortune Global Forum in New Delhi.

Later talking to reporters, he said:

"We are not the ones who will raise these limits. Other people will raise them."

Though the market regulator said it would introduce new products, he did not specify the kinds of products that will come into the market. "Some of those are tomorrow's news and I don't want to be specific," he said.

Sebi has invited public comments on regulations for securitisation market, which is an unregulated area, he said adding that by the year end, the market watchdog will frame regulations in this regard.

Damodaran denied that Sebi's move on curbing participatory notes were sudden and shocking.