5 Cse Brokers To Be Declared Defaulters

The Calcutta Stock Exchange (CSE) has decided to declare five stock brokers defaulters after their failure to honour pay-in obligations amounting Rs 2 crore to the bourse during the payment crisis in March 2001.

The decision, once implemented, will take the total number of defaulters to 15. Earlier, CSE authorities had declared as defaulters 10 broking firms, owned by Dinesh Kumar Singhania, Harish Chandra Biyani and Ashok Poddar, immediately after the payment crisis. The 15 brokers owe nearly Rs 100 crore to the exchange.

The CSE board arrived at the decision to declare the five brokers defaulters at a meeting yesterday after giving them a hearing. The decision would be publicly notified once it received the approval of the CSE management committee chairman Dipankar Basu.

Till then, the bourse authorities would make the names public. According to the guidelines of the Securities & Exchange Board of India, the five CSE members will not be allowed to trade in securities on any other exchange of the country.

CSE sources said the exchange authorities would encash the defaulting brokers' fixed deposits and other instruments kept with the exchange to recover their outstandings.

Following the encashment of the instruments, legal proceedings would also be initiated against them.

Although the CSE board summoned 13 members for failing to clear their payment outstanding, only five attended the meeting.

However, a handful of absentee members were granted some time to honour their payment obligations failing which they would also be declared defaulters, sources added.