BSE brokers are upbeat with the exchange authorities' decision to come out with the new system which will give them a level-playing field as compared to their counterparts at the National Stock Exchange (NSE).

Mr Kalparaj Dharamshi of Dharamshi Stock Broking said," BLESS has an edge over the MCFS and traditional carryforward system, in the sense that it will provide an opportunity to vyaj badla financiers to take the delivery of the shares for which he has provided the funds. NSE's ALBM segment already provides this facility to its members. The previous system had a lacuna in which the securities meant for vyaj badla had to be compulsorily deposited with the clearing house," he said. He also said that though introduction of BLESS means going back to the traditional badla system somewhat but, as it has been introduced with new features in a new avatar, it will also successfully attract corporates and mutual funds to this market. These institutional investors were somewhat unhappy with the word "badla", but now they will also be a happy lot as BLESS will not only offer them a facility of stock-lending but it will also provide them an opportunity to park their short-term funds in the market which can earn higherinterest rates (higher than normal call money rates) in the form of BLESS charges, which will be covered under the trade guarantee fund, he added.

Another obviously happy BSE broker, Mr Pradeep Doshi, termed BLESS as a ``blessing'' to the broking community. He said:"This is the best millennium gift the exchange authorities have given to their members. It seems that with BLESS the BSE is paving the way for the smooth functioning of rolling settlements, futures and stock options," he added.

He also echoed the same view about institutional participation as far as securities lending and borrowing is concerned. Mr Doshi said that hitherto these institutions were investing their short term fund in the market but now onwards as their securities will also be covered under trade guarantee fund we may see hectic lending and borrowing of securities from these investors who have huge shareholdings in "A" group stocks including many blue chip companies, he added.

Mr Doshi also said," Introduction of BLESS will also provide level playing field to BSE brokers as hitherto it was tilted in favour of ALBM and NSE. At NSE brokers do not pay carry forward margins while in case of BSE, brokers have the margin obligation. But now this disparity has been done away with. BLESS also has an advantage over previous system as far mode of margin payment is concerned. This system enables members to pay 50 per cent of their carry forward margins in the form of fixed deposit." This will ease the cash crunch on the brokers and will also help the brokers to increase their other income, he said.