Stock Exchange Watchdog SEBI has proposed that some urgent measures need to be taken to curb the use of some categories of derivates instruments by FIIs. SEBI may ban the use of Participatory notes which are issued using stock futures or options. Finance minister recently expressed his concerns regarding over-stretched Indian Stock Markets. Indian Stock markets are trading at all-time highs. The SEBI move to ban P-notes may have negative impact on Stock Markets.

As per SEBI records, 34 FIIs issue Participatory notes. In August 2007, the value of Participatory notes was nearly 51% of total assets under FIIs in India. As SEBI allowed P-Notes, the exposure of FIIs in P-Notes increased of 20% in March, 2004 to 51% during August, 2007.

Continued buying interest in key stocks, firm worldwide cues and upbeat results of the companies led the Sensex to achieve a new peak of 19,095.75.

On this technical analyst, Vishwas Agarwal, said, “Ultimately our long awaited 5,678 was acheived today on NSE. Here I will take some rest, but there is a lot of opportunity for traders and also there are options in some stocks.”

Mumbai: The benchmark Sensex has gathered up more than 224 points in early trading on the Bombay St

The stock market is likely to maintain an average surplus liquidity of about

Thanks to continued buying interest in heavyweight stocks including Reliance Industries (up 3%), ONGC (up 4.1%) and Tata Steel (up 4.35%), the Sensex has break off its lower levels this morning.

BHEL (1.6%), Hindalco (2.1%), Mahindra & Mahindra (0.85%), ACC (0.6%) and Reliance Energy (0.55%) have also recorded superior gains.

SBI, Bajaj Auto, Grasim Industries and Tata Motors were trading around their last closing levels.