BSE to cut down pay-out schedule

BSE has also decided to divert the current account money which is collected from the brokers in the form of margin money and settlement money into fixed deposits which could help them earn interest. However, in certain adverse conditions the president admitted that the exchange will have to resort to taking temporary loans against these fixed deposits to meet the pay-out liabilities on time.

Damani took the opportunity to brief member-brokers about the developments on the corporatisation front. He advised brokers to avail of the one-time capital gains tax exemption and submit their applications before December 22, rather than wait till the last day.

The exchange is likely to meet on December 24 to study the progress of the work headed by the scrutiny committee set up by it.

On the issue of setting of BSE’s depository — for which a company, Central Depository Company of India, has been floated — Damani asked the members of the exchange and the clearing house to participate in this venture by subscribing to the capital of this company.

He assured them that the cost of the project which would be okayed next week after finalising the bids of software and hardware vendors would be economical.

Further, he also briefed the members about BSE’s participation in the National Securities Depository Ltd (NSDL) which would kick off on December 29.

However, the exchange has decided to start with a mock-trading session for the members in the demat segment for a period of four days starting December 22 to December 26.

BSE has also received the nod from Sebi to increase the number of trustees on its board from the present 4 to 5. Accordingly, on account of the resignation of two senior trustees, Damani proposed the names of Vinay Chandra Parikh, Priyankant Dalal and K R Chokshi as the new trustees which was unanimously accepted.

Damani also announced that the final connectivity with Pune Stock Exchange, is likely to receive Sebi’s approval by next week.