No proof of terror outfits’ participation in mkt: Govt

On the funds inflow through PNs issued by Foreign Institutional Investors, he said as per monthly reports filed by FIIs, the outstanding value of PNs as on February 2008 amounts to Rs 3,22,743 crore.

PNs are issued by FIIs to investors, who are otherwise ineligible to directly invest in the Indian equity market.

Replying to another question, Bansal said the recent movement in the stock market is attributed among other factors, to the sub-prime mortgage crisis in the US, change in the monetary stance of developed countries and the expected recession in US and Yen carry trade.

Besides, firming up of oil prices, the policy measures on offshore derivatives instruments by SEBI, impact of primary market issues, relative valuations in the emerging markets, etc are also responsible for the fluctuation, he said.

He clarified that the authorities do not try to manage or control movement of stock indices.

Bansal also said SEBI is also reviewing the entire issue process with an objective to reduce the time gap between closure of an IPO and its listing.

Reduction of time gap between closure and listing of public issue would safeguard the interests of investors by ensuring that investors would get faster refund in IPOs as their money would not be blocked, he said.