In line with measures announced every year to strengthen the capital markets, Finance Minister Shri P. Chidambaram proposed in the Budget 2007-08:
- PAN to be made sole identification number for all participants in securities market with an alpha-numeric prefix or suffix to distinguish a particular kind of account;
- Idea of Self Regulating Organisations (SRO) to be taken forward for different market participants under regulations to be made by SEBI;
- Mutual funds to be permitted to launch and operate dedicated infrastructure funds;
- Individuals to be permitted to invest in overseas securities through Indian mutual funds;
- Short selling settled by delivery, and securities lending and borrowing to facilitate delivery, by institutions to be allowed; and
- Enabling mechanism to be put in place to permit Indian companies to unlock a part of their holdings in group companies for meeting their financial requirements by issue of Exchangeable Bonds.
Source : Press Information Bureau