Perturbed over rising incidents of insider trading, Sebi Chairman U K Sinha on Tuesday said the market regulator is setting up a committee to revisit norms on the issue . "We have regulation for prevention of insider trading. We have now decided to set up a new committee to relook at entire regulations. So, the entire insider trading regulation will be revisited," Sinha said. "Like we had revisited the takeover code , similarly the insider trading regulation will also be revisited," he said after the opening of new local office for Sebi. The committee will observe the practices that are followed in the other parts of the world and come out with its recommendations on insider trading by next year, he said. Sebi Chairman said the regulator does not need any additional powers at the moment but if the committee recommends, the regulator may seek an amendment in the Act. "We are not looking at more powers from the government. However, if the committee recommends that there is certain lacuna in the Sebi Act, then we will take up with the government. Right now I cannot say whether I need new amendment from the parliament," Sinha said. Asked about the recent trend of price erosion below the IPO price after listing of companies, Sebi chief said the proposed guidelines on the safety margins for small inventors in the Initial Public Offers (IPO) will be finalised shortly. Sebi last year floated discussion paper on the subject and has received comments, he said. "In the next one month or so, we would like to close this and take final call on this. We want small investor who is investing in the primary markets is protected," Sinha said. According to him, shares of one third of the companies which have gone for IPO in the past two year are now being traded below the offer price. Sebi has opened its local office in the city as part of its efforts to reach out to investors across the country. As part of its decentralisation of work to regional offices, the Mumbai-headquartered Sebi is opening new local offices in different regions of the country. Sebi is looking to strengthen its regional offices since physical proximity of the regulator's office to investors and intermediaries would promote deepening and broadening of the securities market.

The Reserve Bank of India’s panel (external members) was “unanimous” in recommending a rate cut in the third quarter review of monetary policy on January 29.

“All external members were unanimous in recommending a reduction in the policy repo rate. Four of the six members suggested that the Reserve Bank should reduce the policy rate by 25 basis points,” according to the minutes of the technical advisory committee (TAC) on monetary policy which was held on January 23..

TAC includes members from the RBI as well experts from outside.

They felt that favourable global conditions as well as marginal decline in WPI inflation provide room for some monetary easing. This would also support the reform initiatives implemented by the government, it added.

“Two of these members felt that a 25 basis points reduction in the repo rate alone may not induce banks to reduce their lending rates and a cut in the cash reserve ratio (CRR) of 25 basis points to nudge the lending rates down is in order. This would also enable loan rates to reduce more than deposit rates,” the minutes noted.

Two members recommended a sharper reduction in the repo rate by 50 basis points and use of OMOs to manage liquidity. One member was of the view that a 50 basis points cut in repo rate would increase working capital loans.“This would invigorate growth and also work towards reduction in inflation.”