BSE allows exit route for small players

quot;The quot;Cquot; group window will now accept trades in earlier market lots of 100 or 50 as well as odd lots in the scrips mandated for compulsory demat deliveries,quot; the release stated. The BSE has become the first exchange to offer such a facility after Sebi approved the plan in January this year. It may be recalled that Sebi had issued a notice dated January 25 to all exchanges asking them to make this facility available at the exchange level.

The facility, according to BSE officials, will help reduce the inconvenience causedto the investors in terms of the time taken to get the shares dematerialised. However, in order to avail of this benefit the exchange has further suggested certain changes in the operational aspects of the scheme.

The changes made in the operational modalities of the scheme include the facility of delivering physical shares in the scrips mandated for compulsory demat delivery would be available only to the registered shareholders.

Further, brokers selling these physical shares will have to ensure that the physical deliveries in scrips mandated for compulsory demat delivery do not exceed 500 shares in number or Rs 25,000 in value, whichever is less.

quot;The value in such cases would be specified on the delivery order since the odd-lot delivery orders are on the basis of transaction rates,quot; stated a BSE release.

However, the exchange has also asked the brokers to ensure that the shares introduced through the C group window are not reintroduced in the physical segment of the exchange.

In case of anycompany objection or bad delivery the settlement of the same would be done as per the bye-laws on good and bad delivery prescribed by Sebi. The exchange has also laid down certain conditions whereby the selling broker would be treated as the introducing broker and hence would be responsible for trades and the settlement of the same.

Sebi to continue proceedings against Mathur

MUMBAI: The Securities and Exchange Board of India SEBI would continue enquiry proceedings against former Bombay Stock Exchange BSE executive director, R C Mathur, irrespective of his laying down office.

According to Sebi sources here today, Mathur, who had come on deputation from State Bank of India, if proved guilty could be made ineligible for holding any public position8217; in future.

Sebi would hear Mathur as scheduled, sources said. He had failed to turn up for a personal hearing with the market regulator last week and had requested for another two weeks8217; time. Mathur8217;s resignation last week followed SEBI8217;sdismissal order to the exchange president, J C Parekh, and show-cause notices issued to both for their alleged role in influencing the exchange administration, in getting margins reduced and also keeping the trading system opened beyond operating hours for select brokers.

The Sebi order follows an investigation into unnatural price movements in the scrips of BPL, Videocon International and Sterlite in May last year. In response to the show-cause notice, Mathur alleged that Parkeh and the then vice-president R K Banthia had forced him to accept ad hoc margins in the form of shares. Parekh, on the contrary, had contended that it was the executive director8217;s prerogative to ensure surveillance.