PRESS RELEASE
SEBI disapproves overseas lending I borrowing activity of FIls
SEBI has been reviewing the data submitted by Foreign Institutional investors (FIIs) with regard to their stock lending activities abroad. While the stock lending mechanism has been made operational in the Indian market, SEBI finds that this facility has not been used by the institutions. SEBI is reviewing the difficulties in the use of the lending borrowing facility and would be taking steps to make this mechanism more effective. SEBI disapproves of the overseas lending I borrowing activity of FIls and the consequent selling pressure in the cash market in India. SEBI has communicated its disapproval to the FIls. The lending I borrowing activity of FIls is being monitored and if necessary stronger measures will be taken by SEBI as considered appropriate.
Mumbai
October 20, 2008