Market regulator SEBI has barred 197 foreign funds, including those managed by global financial conglomerates like HSBC, Deutsche Bank and Standard Chartered, and 342 sub-accounts from further trading in stock market. These entities have been barred from fresh trading with immediate effect for non-disclosure of holding structure to the regulator, SEBI said in a circular.
“With effect from October 1, 2010, FIIs (foreign institutional investors) and sub-accounts that have not complied with the above mentioned requirements will not be permitted to take fresh positions in cash and derivatives market while they can retain their current positions or sell off/ unwind,” SEBI said.
Stock market barometer Sensex, however, did not respond to SEBI’s move and rallied 376 points, or 1.87 per cent, to close at 20,445.04 points.
