The Hindu Business Line : Panel on financial markets debates FEMA norms

The High-Level Coordination Committee (HLCC) on financial markets which met here on Saturday debated FEMA regulations relating to foreign venture capital funds.

Foreign Venture Capital funds need to meet certain requirements under FEMA before they can be registered by the SEBI, which was seeking certain clarifications on the matter, said sources.

The committee also discussed introduction of credit and bond derivatives in the country. This had been recommended by the Percy Mistry report in the context of developing Mumbai as an international financial centre.

The introduction of currency futures was also on the agenda for discussion.

SEBI displayed its readiness to go ahead with the date of August 31 for its introduction whereas the RBI, which would be the largest player in such a market, was considering a date around mid-September, said sources.

All the discussions were inconclusive and the topics are still open for debate, they said.

In the group

HLCC is composed of representatives from RBI, SEBI, Insurance Regulatory Development Authority, and others from the Finance Ministry.

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