The Bombay Stock Exchange (BSE) has provided Rs 15.78 crore for liabilities caused by defaulters for the year ended March 2001. According to the BSE's annual report, the amount is inclusive of the amount paid towards members pay-in of Rs 1.55 crore and advance given for meeting liabilites to the clearing house of Rs 14.23 crore.
However since the trade guarantee fund is insured the exchange authorities say the provisioning is temporary and will be recovered from the sale of assets and BSE cards of the defaulters.
The BSE said that, "The risk management system is the best in the country and has stood the test of time. The exchange has proved its effectiveness, both in terms of least number of defaulters as well as use of least amount from the Trade Guarantee Fund (TGF) compared to the other exchanges."
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BSE further said that its capital contribution during the year has shot up to Rs 283.39 crore from previous year's Rs 153.51 crore. The reserves and surplus is also up from Rs 230.29 crore to Rs 306.63 crore.
BSE has stated that investment in technology during the year was of Rs 95 crore and the cost of computer maintenance including the AMC went up from Rs 8.73 crore to Rs 17.88 crore. Moreover, since this was the first year for the Rs 95 crore investment in technology, depreciation at the rate of 60 per cent or Rs 58 crore was provided in addition to the cost.
In May, the BSE had set up its own master earth station (HUB) which uses full transponder on Insat 3B satellite to cater to trader work stations located over 400 cities across the country.