& çâÌæÚUæð´ ·¤è ¥ôÚU Îð¹Ùæ ÁæÚUè ÚU¹ð´ ¥ÍæüÌ ¥ÂÙð ÜÿØ ÂÚU ŠØæÙ ÚU¹ð´Ð ãæÚU Ù ×æÙð´, €UØô´ç·¤ ·¤æ× ·¤ÚUÙð âð ¥æÂ·¤ô ©gðàØ ·¤è Âýæç# ãôÌè ãñ ¥õÚU ÁèßÙ ·¤æ ¹æÜèÂÙ ÎêÚU ãôÌæ ãñÐ ÖÜð ãè ÁèßÙ ×ð´ ç·¤ÌÙè Öè ·¤çÆÙæ§ü €UØô´ Ù ¥æ°, çÁ™ææâæ ¥õÚU ©ˆâæã ÕÙæ° ÚU¹ð´Ð ŠØæÙ ÚU¹ð´, ÜÿØ ã×ðàææ ¥æÂ·Ô¤ Âæâ ãôÌð ãñ´ çÁ‹ãð´ ÂæÙð ·Ô¤ çÜ° ÂýØæâ ¥æÂ ·¤Öè Öè àæéM¤ ·¤ÚU â·¤Ìð ãñ´Ð

Move, to modernise capital markets

Delhi lifts 38-year-old ban on options contracts
NEW DELHI. Jan 28: The Indian government announced yesterday an end to a 38-ycal old ban on options contracts opening the door to a wide range of new financial instruments in one of the most promising developing economies. reports Reuter
The surprise decision marked a major step in the modernisation of India s capl tai markets and thetr Integra tlon with overseas financial.
II was the latest move by Prime Minister P V Naraslniha Rao* government to bring India s economy shielded for more than four decades from moat, foreign influence, closer to the global mainstream
Il » a major < liange. a sc nior government official snld.
Senior Finance Ministry oi
fir lais P J Nayak said the ban on options was anachronistic. 11ui set urines houses had been passing the government to lift it to let them to hedge risk more'effectively.
Options give a buyer the right but not the obligation to buy or sell a financial instru meat at a fixed price before or on a certain date in the future. Investors often use options to manage risk but they can also lx- used to speculate
The Senior Executive Director ol the Securities and Exchange Board of India (SEBI) C B Bhave. said the decision to end Iha han on op Hone effectively cleared the way for the creation of futures markets
Now if you want Jo start an options and futures Exchange for securlt|ea. you can." Bhave told Rrutew
Futures are agreement to deliver or take delivery of a standardised amount of an un derlying financial Instrument <>l commodity at a standardised' price in the future at a prede termined price
Officials said a ban on forward trading of shares, imposed following a I 3 billion US dollar securities scandM-ln I 'erg would remain in efiec t.
Forward contracts are cash transactions under which a
buyer and seller agree on the delivery of a specified quality and quantity of a commodity of other goods at a specified fu lure date Prices may be 'set beforehand or at delivery
Brokers welcomed the end to the ban on options.
The amendment of allow Ing future options In the stock market by the government will stabilise the slock market." said Slkartder Lal Kohli of broking firm Sfkander Lal Kohli
"It Is grxxl for the market Ojjeralors thus have the option to ball themselves out”
I he government also gave substantia) new powers to the Sebi. which regulates secun
Il won authority over espial Issues and the transfer of seen lilies which previously had been regulated by the Industry Ministry
Sebi was given the power to levy civil fines on securities houses Previously the regula tor could only suspend and cancel firms registration, or press criminal charges — moves the government said often forced firms to close, hurling Innocent business partners
The government also al lowed stock exchanges to se( up additional trading floors