Ruling out any relaxation in regulations, market regulator SEBI on Saturday said it will soon allow real estate funds, short selling by big investors and a system of stock lending and borrowing.
To attract foreign companies to raise funds from India, the regulator is also considering a guideline for Indian Depositories Receipts in line with ADRs and GDRs.
SEBI is also considering physical settlement of shares, its chairman M Damodaran said at the Satya Paul annual lecture.
Asking stock exchanges to be more vigilant, he said "we have to ensure that the first level regulations are carried out promptly. Next, we need to provide more products." In the context, he said "last year, we came up with norms on Gold Exchange Traded Fund.
This year, we will come up for real estate funds." Once the regulations are out, mutual funds can set up trusts, which can invest in the real estate sectors. Damodaran said more derivative products are on the anvil. "Once more introduction this year will be short selling by institutions.
There will also be a system of stock lending and borrowing," he said. Physical settlement of shares will be initiated, he added.
