Bse Unplugs Over Ten Brokers

The exchange has, meanwhile, received firm commitments from about three brokers who were facing financial problems but have promised to fulfil their obligations. The pay-outs for settlement no 25 in A+B1 group and for settlement 14 of the B2 group was completed successfully yesterday, the BSE said.

Top-level exchange sources said yesterday that the decision to switch off the terminals has been taken as a damage control measure to thwart any possibility of a fresh default. Last week, the exchange was rocked by its first default this year, when member Shailesh Bajaj failed to meet his commitments run up in the scrip Sesa Goa.

 

BSE sources said the clampdown on the problem members is a fallout of overtrading in Reliance, SBI, and some B2 stocks. But the sources were emphatic in saying that none of the commitments of the problem brokers is more than Rs 1 crore each.

In another development, BSE yesterday revised the special margins on 86 stocks, many of which have witnessed price rigging operations earlier. The highest margin has been imposed on a stock called Baba Business (Rs 115).

The exchange has also suspended trading in 17 stocks for failing to inform the bourse about the book closure dates. These apart, two debentures, those of Boehringer Mannheim and Gujarat State Fertiliser Corp (GSFC), have also been suspended.

In an unrelated step, two BSE officials would also visit the United States to understand the surveillance systems on Wall Street and possibly bring home some of this expertise. Senior Sebi officials also met BSE officials yesterday in the connection of the US visit.

There is definitely a crisis. But more important is how the exchange tackles it,