Dse Seeks Time Till Friday To Enforce Capital Adequacy Norm

The exchange authorities were earlier contemplating switching off terminals from Tuesday onwards. The rationale for the further extension is that any action taken against brokers while the settlement period is still on could prove to be detrimental to the investors.

Supposing a broker has initiated a sauda, it is imperative that we give him a chance to square it off before we switch off his terminal or else it could lead to a financial crises at the bourse. It is for this reason that we have sought time till the end of the settlement, which is Friday, before taking action against the defaulters, said Paramjeet Singh, president of DSE.

 

It could not be ascertained whether the market regulator has granted the permission to the bourse. Sebi sources, however, said that given the poor market conditions and the logical demand of the DSE authorities, the market regulator might relent.

As many as 125 members of the bourse have failed to meet the September 30 deadline. However, some of them have availed of the grace period extended to them and more are likely to come forward and pay up their dues in the coming days.