Bse Decides To Step Up Surveillance

The Bombay Stock Exchange has intensified its surveillance/monitoring mechanism as the markets got more volatile over the past few days. According to sources, the exchange had called on a few brokers to pay up an ad-hoc margin linked in some of the index scrips where long positions have been built.

Indications are that the net outstanding positions in the market has not reduced significantly despite the fall of nearly 400 points in the Sensex during the week.

Exchange officials said they did not wish to divulge any details of the action taken but confirmed that brokers had been called on to make ad-hoc margin payments.

Marketmen say around 30 brokers were summoned by the BSE and some of them have been asked to square off their positions. However, R C Mathur, executive director, refused to confirm to deny the developments.

He said, "The surveillance department has looked at the buying and selling positions of at least 100 brokers on any trading day. After scrutinising the books and taking the normal margin money, we had felt that there was not adequate cover and hence necessary action had to be taken. We can confidently say that the markets are safe at the moment, considering the action taken."

Broking circles have been agog with rumours that a lot of brokers were likely to default on payments this week because of the sharp volatility witnessed during the week.