In a resolution passed at the meeting, it has been decided to take all possible steps to put an end to such practices. It has resolved to take strong action against any broker indulging in such practices.

To begin with, members have been debarred from assembling in the trading hall on settlement days. This is intended to prevent members from misusing official premises for unauthorised carryforward trades.

Unofficial badla flourished in Calcutta even after introduction of the modified carryforward system permitted by the Securities & Exchange Board of India because it was a convenient way of evading margins on such trades. The net result was that transparency of trades was given short shrift and badla rates got manipulated.

Market sources point out that the regulator is slowly but surely movingtowards rolling settlement as soon as the level of dematerialisation exceeds 90 per cent of the market capitalisation. Once rolling settlement is in place badla would become redundant, these sources add. In another major development, the committee today declared Anand Share Broking Pvt Ltd, Ganpatray Kayan, SK Goenka and Pawan Kumar Harlalka as defaulters and suspended them from the membership of the exchange. These brokers have been given six months to clear their dues, failing which their membership shall cease automatically and their cards forfeited.

The committee also discussed at length the criteria for inclusion of scrips in the specified list and decided to further examine the norms and parameters proposed for inclusion. It is expected that this will be decided at the next board meeting of CSE. Only recently the CSE authorities had included 53 scrips in the specified group, taking the total number of scrips to around 115.

The committee renewed the progress made regarding Y2K compliance and adeadline of September 15, 1999 has been set for the purpose. It was also decided that the committee will be apprised of the progress on this front.The board was also informed that as a result of the efforts put in by the exchange, the volume of business done by UTI on CSE through their custodian, the Stock Holding Corporation of India Ltd, increased to more than Rs 70 crore in the last two settlements.

Attempts are being made to step up the volume of institutional trades on CSE by seeking the participation of other major custodians in the CSE clearing house.