Bse Scripts 7-Point Clearing House Clean-Up

The Bombay Stock Exchange has chalked out a seven-point programme to tide over the current problem faced by its clearing house, BoI Shareholding. According to BSE governing board director, Deena Mehta, the exchange will get shares held by the clearing house transferred in its name and get them dematerialised.

Mehta is a member of the task force set up to sort out the problem faced by the clearing house and suggest remedial measures. "We have decided that we will begin with a revamp of the software system. We will also begin aggressive dematerialisation of shares held by the clearing house," she said.

 

According to Mehta, the exchange is planning to implement the following changes:

*The clearing house software will be upgraded to improve the account processing flow to speed up reconciliation. The communication link between the member office, clearing house and the vyaj-badla depository will be upgraded.

Discussions on with NSDL to have vyaj badla shares dematerialised. The exchange wants the clearing house to receive shares in for book-closure to be returned in demat form.

Plan afoot to convert BoI Shareholding into a custodian so that shares can be transferred in their name and converted into the demat form.

All non-vyaj badla shares held in the clearing house which constitute for 25-30 per cent of the total shares held by the clearing house during days of high trading volume, will be disposed off (distributed to rightful owners). The clearing house has been bearing additional burden of handling these shares since 1988.

There will be a change in the organisational hierarchy of BoI Shareholding so that all tasks for reconciliations are segregated in an efficient manner. There will be section heads appointed for delegating responsibility.

Sebi, NSDL were approached for allowing shares to be dematerialised while they are lodged for transfers. This will reduce the workload on the clearing house considerably.