PUNE, November 4: The Pune Stock Exchange, which is set to introduce BOLT shortly, will soon apply to SEBI for permission to introduce the modified carryforward system, JN Gupta, president, PSE, said.

This was decided at PSE's monthly management council meeting on October 22. The exchange will now apply to the market regulator for permission "at the earliest." Gupta was confident that about 50 members would opt for carryforward.

PSE, which has been in the eye of a storm over the unauthorised carryforward trading of a large number of its brokers and a report that cleared them, has received approval from SEBI regarding the appointment of three non-brokers and two brokers on its Disciplinary Action Committee (DAC). The newly constituted DAC will now have KR Chandratre, GH Deolalkar and Dilip Karnik as its non-broker members while Uday Patankar and KC Shah will be the two broker-members. The president and executive director are ex-officio members.Following the annual inspection of the PSE by the regulator in July, the PSE has initiated a compliance report wherein it has proposed several stiff measures for defaulting members.

One of the measures is to charge a penal interest of two per cent per month to a member who has not paid his or her annual subscription, due by June 30. This measure came into effect from November 1 and would come up for review on December 31, when the issue of expulsion of a member from the stock exchange arises. At present about six members have not paid their annual subscription of Rs 5,000 and have therefore been suspended from trading.The management council is exploring the possibility of automatically shutting off a broker's terminal in case he exceeds his margin at 110 per cent, in line with the system followed at the NSE, Gupta added.

The much-awaited BOLT expansion to Pune is likely to be delayed with BSE requiring SEBI's clearance to begin operations in Pune. PL Kadlaskar, executive director, PSE, said this is the first time that an exchange-to-exchange memorandum of understanding had been signed between the BSE and the PSE for BOLT, unlike others where it has been brokers expanding their operations. This requires special clearance from SEBI.