Bse Reworks Derivatives Collaterals List; Essel, Gtb Among Axed

Dropping volumes and withering values have taken their toll on some market performing stocks which are accepted as collaterals in the derivatives segment on the Bombay Stock Exchange (BSE).

The shares and other securities which will no longer be considered as collaterals from September 17 include: Bank of India, Chambal Fertilizers, DSQ Software, EIH Limited, Essel Packaging, Global Trust Bank, Great Eastern, Gujarat Gas, Hindustan Zinc, Hughes Tele.com, Indian Rayon, Mascon Global, Mastershare, Morgan Stanley, National Aluminium Co, Oriental Bank of Commerce, Shonkh Technologies, Smith Pharmaceuticals, Television Eighteen and UTI Bank.

The revised list of 100 eligible securities has been based on market capitalisation and trading volume as per the recommendations of the J R Varma committee for acceptance as collaterals towards minimum liquid assets and additional liquid assets.

 

The new list includes: ABB Ltd., Aksh Optifibre, Apollo Tyre, Aurobindo Pharma, Balaji Tele, Ballarpur Industries, Bata India, Bombay Dyeing, BPL Limited, Cadbury (I), Century Textiles, Cummins India, Gujarat.Narmada, Hero Honda, Jindal Steel, Mastek, Saw Pipes, Syngenta Ind, Tata Elxsi and Videocon International.

Some new entrants eligible for collaterals had rocked the markets recently. Balaji Telefilms had to be suspended from the five-day weekly settlement mode and had to be shifted to trade-to-trade basis and also under optional rolling settlement because of sharp volatility in prices and volumes which had crossed a couple of times more than its floating stock. Saw Pipes has also been on high price movement spree since the last six months.