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Finance ministry quibbles over rolling settlement
AF Rosemary
MUMBAI, January 4: The Finance ministry is said to have some reservations on the issue of introducing a rolling settlement for trading in dematerialised shares. The ministry's views are likely to be aired at the meeting of the Securites and Exchange Board of India (SEBI) board to be held in Calcutta on Monday. It may be recalled that at a meeting of all stock exchanges in December, it was agreed that a rolling settlement of T+5 be started for the demat segement from January 15. The date was to coincide with the time when all institutional trades are to be done in the demat segment, compulsorily. Sources added that it was strange that the ministry had an opposing viewpoint when all exchanges saw nothing wrong with the proposal.Currently, only NSE offers trading facility for dematerialised shares with both weekly netting and a rolling settlement system. Earlier, NSE was offering only a rolling settlement for the demat segment, but since members complained of some problems, the exchange introduced a weekly
netting facility as well. However, after the December meeting even NSE agreed to have the T+5 rolling settlement. While the board will be appraised of the progress in the capital market during the year gone by, sources said that one of the other items for discussion is the regulations for plantation companies.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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