CHENNAI, July 3: The Securities and Exchange Board of India (Sebi) has given an in principle nod for the Madras Stock Exchange (MSE) to set up a settlement guarantee fund. It is also planning to start carry-forward trading (badla).Disclosing this here this evening, MSE president S Raamassubramanian said the fund would have an initial corpus of about Rs 2.32 crore.
Raamassubramanian informed press persons that MSE would seriously look at `carry-forward side'. The MSE president said the exchange was now busy writing rules and regulations before the proposal was placed before the board of the exchange. He expected the exchange to approach Sebi by month-end to seek the regulator's nod for badla trading. Badla trading on MSE stopped in early '80s. Since then, MSE had been a `cash market', he said.
MSE would contribute Rs 1 crore to the corpus. Each member-brokers would commit Rs 1 lakh to the corpus. This would come into the corpus by transferring from the `base minimum capital' Rs 1 lakh per broker. Thesecontributions, he said, would be equally backed by insurance. Besides these, MSE would collect a non-refundable contribution of Rs 10000 from each member-broker, he said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
