Sebi Clears Bse Trade Guarantee Fund Scheme
The Securities and Exchange Board of India (Sebi) has formally approved the Bombay Stock Exchange (BSE) proposal for setting up a Rs 172 crore trade guarantee Fund (TGF) with the operational guidelines being cleared yesterday. The BSE governing board is expected to meet today to discuss the bye-laws for the fund.
According to sources, the bourse is planning to make the fund operational from Monday. The fund has an initial corpus of Rs 60 crore while the remaining amount is expected to come from accruals.
The exchange is soon expected to submit these guidelines to the National Securities Depository Ltd soon as the clearing house, BOI Shareholding, has sought its membership. According to the depository bye-laws, the clearing house is expected to have a trade guarantee mechanism.
The bourse has, from April 1 onwards, already commenced collection of contribution from members at the rate of Re 0.75 for every Rs 1,00,000 gross turnover in all groups except carry forward transactions in A group.
BSE president M G Damani feels that there would be no need to touch the core fund as the income would be more than sufficient to pay for any risk management operation in the clearing house.