An expert committee of market regulator Securities and Exchange Board of India
(Sebi) plans to consider a slew of secondary market reforms, such as boosting the securities lending and borrowing (SLB) framework, weekly-settled derivatives contract and review of the 'block deal' framework.
The Secondary Market Advisory Committee (SMAC) meeting of Sebi
is scheduled to meet on Monday to discuss these issues. Sources said the regulator has sought recommendations from the panel to enhance the SLB mechanism to help better price discovery in the cash segment. The development of SLB mechanism is critical enable shorting in the cash segment and also for physical-settlement of equity derivatives contract.
One of the measures discussed is to ease norms to enable depositories and brokers to lend securities without one-time consent of the investors or shareholder, sources said. Under the framework, the securities have to be lent by the investors themselves.
The SMAC also plans to review introduction of weekly stock future contracts. Currently, weekly contracts are available only on Bank Nifty
Sources said a review of the pre-open call auction framework is also on the agenda, along with a review of the block deal framework, listing regulations and conduct of index providers.