Sebi Takes Dse To Task For Inaction Over Defaults

The market regulator has also ruled out considering a separate definition for inactive members which several exchange authorities, including the DSE, have been pressing for.

As reported in Business Standard, about 125 members of the bourse have failed to pay up their capital adequacy dues despite the expiry of the September 30 deadline.

We have demanded an explanation from the executive director of the DSE over the dilly-dallying approach in enforcing the capital adequacy norms at the bourse.

We learn that they have given two more days to the defaulters, and we are very serious this time, said O P Gahrotra, senior executive director of Sebi, while speaking to Business Standard.

Gahrotra said that the market regulator will not hesitate to take stern action against the defaulters and any exchange which fails to impose the capital adequacy norms.

It is ridiculous that members who conduct transactions in securities worth crores of rupees do not have the will to pay up an additional Rs 3 lakh towards capital adequacy.

And those who say that they do not have the amount should leave the market. A stock market is not the place for fly-by-night operators, said Gahrotra.

Gahrotra also ruled out any review of the status of the inactive members.

It is like saying that if I do not stay in the house rented by me, I should not pay the rent.

There is no question of creating a category for inactive members. If they do not want to be active then let them leave the market, he said.

This tough stance by the market regulator has put the authorities in a spot, as they have now been forced to choose between the