These shares will be then be handed over to some custodians and registrars through a power of attorney, who will in turn transfer the shares in the name of the brokers who own these shares. Consequently, brokers will not be required to individually transfer these shares in their name and get them dematerialised, which is a pre-requisite for dematerialisation.

"The method seems to be workable. It will be far more easier for all the vyaj badla shares to be transferred in the clearing house's name. Earlier, the whole problem was in getting these shares dematerialised. As the depository did not allow shares in street names to be directly dematerialised, we have worked out this method," said asource.

Depository sources confirmed that such a route was being considered by the exchange and the depository would extend all help to the bourse in getting it off the blocks. "The exchange appears to be serious in getting all its vyaj badla shares dematerialised and we will offer all help to them," said a source at the National Securities Depository Ltd (NSDL).

BSE is currently working out the modalities of how the corporate benefits, the tax computations and the cost of dematerialisation the first time around, would be calculated and who would bear the cost.

NSDL had earlier refused to allow direct dematerialisation of vyaj badla shares held in street names as this could pose a major risk to the safety of the depository system. The BSE request to NSDL had come in the wake of problems in the clearing house pertaining to the physical vyaj badla shares housed there. While several shares are believed to have been lost, there is a fear that a large amount of these shares which were deposited on account of"book bandh vyaj badla", could have been stolen by somebody with vested interests.

According to market sources, the shares which had been deposited in the clearing house during the first week of April, when the no-delivery season had kicked off had been misplaced. The developments have led to inquiries being initiated by BSE, Bank of India as well as Sebi.