Sebi to launch pilot project for retail investors

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Kolkata, Sep 2 (UNI) SEBI will launch a pilot project on September 8 under which the retail investor could instruct his Bank to block the bid amount and release the amount for allotted shares only.

This was informed here today by Securities and Exchange Board of India (SEBI) Chairman C B Bhave while speaking at an interactive session, organised here today by Merchants' Chamber of Commerce(MCC).

Mr Bhave said already five Banks -- Corporation Bank, State Bank of India, Union Bank of India, HDFC and ICICI had shown their interest to participate, in this regard.

'' The pre-launch testing has already been done. The purpose of the pilot project is to have more practice, '' Mr Bhave stated.

In practice, the investor's money remains blocked as share allotments amount to a small percentage of what is applied for.

Furthermore, the Chairman said the SEBI would soon launch ''interest-rate future'' in partnership with the Reserve Bank of India, adding a joint committee had been set up by the two regulators.

However, he did not set any exact timeframe in this regard.

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