CSE calls financiers for bail-out

CSE calls financiers for bail-out

KOLKATA, MAR 13: Financiers, with a reputation for bailing out member brokers from crises on several past occasions, were today called for suggestions to tackle the problem stemming from the payment shortfall at the Calcutta Stock Exchange (CSE).

Earlier in the day panic gripped stock exchanges throughout the country as the National Stock Exchange remained closed for some time because of a `technical' fault. Share prices nosedived during the period amidst fears that a payment crisis existed even on the NSE.

Brokers said the fear was not without reason as almost 40 to 45 per cent of the total transactions in NSE comes from Kolkata brokers and as CSE was grappling to solve its own crisis closure of trading at the premier bourse, was enough to incite another bout of selling pressure.

The situation, however, improved slightly and prices recovered soon after trading resumed at NSE. It was later reported that NSE had increased trading time by one and half hours as it was settlement day at the exchange.

BROKERS, OFFICIALS CLASH:

Another development which fuelled the day's downfall in values in the early hours was a scuffle between CSE brokers and committee members, the sources said.

They said agitated brokers gheraoed the committee members and particularly targetted Executive Director Tapas Datta, blaming them for the ongoing crisis.

Heated exchanges followed, but the situation was soon brought under control. Marketmen said another feature which affected the day's sentiment was the restraining of the officiating President Deena Mehta and six others from acting as directors of the BSE until further notice yesterday by the SEBI.

This followed by reported statements by Union Finance Minister Yashwant Sinha to give more powers to SEBI today fuelled speculation that SEBI might during the day dissolve the committee of the CSE as well, the sources said.

"If that (suspension of brokers from the committee of CSE) happens, it will ensure another steep decline in share prices all over the country," CSE brokers said.

There was a steep decline in prices with the volume of trading remaining substantially low and it was clear from the fact that both Himachal Futuristic and DSQ Software counters attracted circuit filter at lower band no sooner than 33 saudas were punched.