Ban of US-64 trading may be lifted
New Delhi: Finance minister, Yashwant Sinha, gave strong indications that the six-month ban on the sale and repurchase of the US-64, the premium scheme of the country’s largest mutual fund, UTI, will be lifted shortly. He however, clarified that this relaxation may be available only to small retail investors and that too up to a certain limit.

The minister also stated that all decisions of the former UTI chairman, P S Subramanyam, would come under a special review.

The finance ministry has appointed K G Vassal as acting chairman in the wake of the resignation by Mr. Subramanyam. The ministry has directed the new incumbent to focus on restoring liquidity in the large mutual fund.
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Sebi to come down hard on erring brokers
Mumbai: The country’s capital markets regulator, Securities and Exchanges Board of India (Sebi), has decided to crack down on erring brokers who have been putting a spoke in trading with their abnormal quotes.

While these erring brokers have attributed these problems to punching errors, Sebi has ordered the exchanges to deactivate the trading terminals of these brokers and issue them show cause notices.

Sebi has also categorically stated that it would not hesitate to cancel the licences of brokers found guilty of deliberately trying to subvert the system by punching in orders at abnormal prices.

While most people agree that these are just routine errors, there is a school of thought that this is being done deliberately to disrupt the newly introduced trading systems.

Sebi has also decided to direct brokers to bring securities and funds for pay-in on the date of settlement before noon. This is to ensure that the pay-out is completed before the close of banking hours on the same day.
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