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SEBI to consider expanding demat list

The Securities and Exchange Board of India is convening a meeting in July to discuss the issue of inclusion of more scrips to the list in which institutional trading compulsorily takes place in dematerialised form.

''We would include an additional 50 scrips, in which trading by institutions would take place in demat form. The inclusion would take place in two parts, 20 to 25 scrips will be added next month and the rest would be added by the end of 1998, so as to make the number of shares in demat trading to 100,'' SEBI Chairman D R Mehta said in Bombay today.

Compulsory demat trading by institutions like foreign institutional investors, mutual funds, and financial institutions was started on January 15 in eight bluechip scrips. An additional 23 scrips were added by the capital market regulator by the end of April.

Mehta informed that as of now, Rs 300 billion worth shares have been dematerialised. "By the end of August 1998, the value of shares dematerialised will stand at Rs 500 billion," the SEBI chairman said.

Mehta said that SEBI is fully prepared to commence derivative trading, but was awaiting the government's announcement regarding changes in the Securities Contracts Regulation Act.

He also said that SEBI would soon take a decision on allowing mutual funds in derivative trading.