SEBI plans task force to pursue 'vanishing' firms

Faced with a rising number of companies disappearing after raising funds, SEBI has formed a task force to track down these "vanishing" firms and their promoters. Coordinating with the Department of Company Affairs and regional Registrars of Companies, the force will identify defaulters and increase public awareness about those companies. Prosecution proceedings are set to be launched against 105 such companies, with police complaints filed against promoters who remain untraceable.

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There was another resounding market crash. The prices early dropped from 5 to 30 points and the sales exceeded 7.5 million dollars but a moderate rally in the afternoon wiped out half the previous declines. The rally was partly due to the recovery of the Chicago wheat pit, where early losses of about 4 cents per bushel were reduced to less than 2 cents.

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SEBI has enlisted the expertise of prominent India-born economists, including Raghuram Rajan, Marti Subramanyam, and Kaushik Basu, to overhaul India's corporate debt market. The advisory committee recommends allowing trading in euro bonds, establishing a repo market, and introducing "debt managers" to provide two-way quotes. The panel also advocates for a more liberal view on short selling to enhance liquidity and suggests bringing private debt placements by unlisted companies under SEBI's jurisdiction.