India to set pricing norms in trading globally

Mumbai: After SEBI banned short selling of shares last week the Finance Ministry is planning to take further corrective measures to stabilise the stock market.

Officials from the Finance Ministry have confirmed that a decision on pricing norms of Indian companies trading in the American and Global stock exchanges will be taken soon.

The ministry also expressed its concern on rising call rates which is the rate at which corporates borrow from banks.

In fact India's two-day call rate has gone up from 9.75 - 9.86 per cent on Monday to upto 13.50 per cent on Wednesday. India's two-day call rate ends at 12.75-13.50 per cent vs 9.75-9.85 per cent.

Meanwhile, PTI reports that amid challenges thrown up by the global financial crisis, Finance Minister P Chidambaram on Wednesday held hectic parleys with RBI Governor D Subbarao and SEBI Chairman C B Bhave.

Subbarao and RBI Deputy Governor Rakesh Mohan were in a meeting with Chidambaram for more than an hour, while Bhave was closeted with the Minister at a separate meeting for around 45 minutes.

However, the Finance Minister, RBI Governor and the SEBI Chairman evaded reply on what transpired at the meetings.

When asked whether any measures would be taken to further ease liquidity, Subbarao said, "If I have to make an announcement, I wilf the North Block."

Bhave also refused to disclose the deliberations of his meeting with the Finance Minister.

He merely replied to the data issued by the SEBI on FIIs' stock lending to overseas entities, which could be used for short-sale.

The data revealed that FIIs did not go for stock lending to overseas entities for October 23, 24, and 27.

"This showed that no fresh positions have been taken (by FIIs on stock lending to overseas entities)," Bhave said.

Earlier in the day also, both regulators, along with several high ranking officials like Planning Commission Deputy Chairman Montek Singh Ahluwalia, Finance Secretary Arun Ramanathan, were in a meeting with the Finance Minister.

That meeting, which was also attended by former RBI governors C Rangarajan and Bimal Jalan, discussed the position that India should take at the G-20 meeting on global financial crisis on November 15 at Washington.

(With inputs from CNN-IBN and PTI)