NSE146;s SGF dips 52

Dwindling volumes and falling stock prices have taken a heavy toll on the size of the settlement guarantee fund SGF of the National Stock Exchange NSE. The corpus of the SGF has witnessed a hefty 52 per cent erosion over the past 14 months.

During this period, NSE8217;s SGF has dwindled to Rs 1,734 crore as at April 2002, from a much higher Rs 3,621 crore in February 2001, a fall of 52.11 per cent. Official sources at NSE said, 8220;The key reason for the fall in SGF is the steep fall in volumes on the capital market and the plunging stock prices.

The SGF has seen a sharp decline due to a fall in margin collections and additional base capital which are linked to the volumes and prices of the stocks8221;. However, the decline, NSE officials emphasised, had little to do with broker failures.