Nse Indemnity Bond Deadline Extended
The National Stock Exchange (NSE) has extended the deadline to July 1 for a final decision on the contentious issue of members signing indemnity bonds. This follows an outburst from members nationwide. The exchange has adopted this stance in an effort to get a more comprehensive view of members' complaints on this issue.
The exchange has kept in abeyance the order to furnish the personal guarantee until the next NSE board meeting. "With the board meeting later, this goes to suggest that the deadline for signing the bond has been extended," said NSE managing director R H Patil.
Meanwhile, the Association of NSE Members of India has asked the exchange to have at least two trading members as part of the discussions concerning personal guarantee.
An amendment which is likely to be incorporated is that the members will be made liable only for the fake, forged and stolen shares.
The exchange, in a circular issued in May, has asked the trading members to furnish a personal guarantee in order to curb the menace of fake/forged/stolen shares.
According to sources, the exchange is likely to present an alternative scheme before the board.
Patil informed that to date 80-odd members have already signed the indemnity bonds. "