Sebi Weighs Common Clearing House
The Securities and Exchange Board of India (Sebi) is considering a common clearing house for all stock exchanges for speedier delivery of shares.
Sebi chairman D R Mehta said the regulator is also seeking to provide limited banking powers to depositories for settlement of transactions.
He said Sebi will soon move the Reserve Bank of India (RBI) in this regard.
"An internal group of Sebi is looking at both the issues seriously and in the next one-two months proposals would be made," Mehta told reporters at the launch of Internet trading by the Bombay Stock Exchange (BSE).
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The fund transfer to investors would become easy by allowing depositories to function as banks, Sebi chairman said.
For common clearing house, Mehta said the group is looking at various possibilities how to bring about the necessary changes in the present structure of settlement.
At present, all the stock exchanges have separate clearing houses which deals with the transactions of shares.
In the case of limited banking powers, he said, "There is need for banking powers for us as the transfers of funds are now routed through banks."
After the approval of the Reserve Bank of India (RBI), funds can be directly transferred by the depository participants to the investors without the involvement of banks which would lead to faster transfer of funds.
BSE KICKS OFF NET TRADING: Internet trading on the BSE was kicked off on Wednesday with Anand Rathi Securities offering investors the facility to trade on the BSE through its website.
Anand Rathi Securities has launched 'Anand Rathi Direct', an online, real-time, multi-exchange trading portal, which allows investors to trade both on the BSE and the National Stock Exchange.
Sebi chairman D R Mehta inaugurated the site by putting in the first trade.
Anand Rathi, managing director of Anand Rathi Securities, said that it is first site to launched a flat-fee brokerage. The investors are allowed to trade at a flat brokerage fee of Rs 99 per order and take exposure for as much as Rs 5 lakh.
The site will also offer real time streaming quotes with highly competitive brokerage structure of 0.05 per cent on square-off transactions and an additional 0.20 per cent on delivery trades.