 "Sebi")
The Securities and Exchange Board of India (Sebi) is likely to take a less stringent approach in banning participatory notes (p-notes) from the derivatives market.
According to sources, the regulator may not stick to the pure definition of hedging and allow cross-sectoral bets.
Last month, Sebi had proposed to ban p-notes from taking naked positions in the derivatives segment. This means a p-note investor will be allowed to deal in the derivatives counter of a stock, say Reliance Industries, only if the investor owns the underlying stock in the cash segment.
The proposal faced
According to sources, the regulator may not stick to the pure definition of hedging and allow cross-sectoral bets.
Last month, Sebi had proposed to ban p-notes from taking naked positions in the derivatives segment. This means a p-note investor will be allowed to deal in the derivatives counter of a stock, say Reliance Industries, only if the investor owns the underlying stock in the cash segment.
The proposal faced
