The drama that took place on the 25th floor of P J Towers saw hectic negotiations take place involving the two parties and exchange authorities. The transaction was in 4,00,000 shares of a B2 group stock, which involved brokers Raman Dalal and S N Tara.
Raman Dalal told Business Standard that everything had been settled and he had no outstanding position in the market now. S N Tara added: The transaction has been reversed and my client has received shares from the exchange authorities. We have also collected our necessary dues from the pay-out. As such the deal is complete.
However, he declined to comment about the details of the transaction saying that the exchange authorities have worked out a solution.
He also said that while there is quantity in the market, there is no quality in the transactions that take place.
A senior BSE governing board member said that Dalal was earlier warned about the exposure that he was taking in some bad quality paper. Two weeks back, when the same broker came to us with an exposure of about Rs 1.8 crore in a particular stock, he was warned about the payment crisis that may occur. However, on that occasion he managed to scrape through. But this time we had to bail him out.
Marketmen say that there is nothing wrong in what BSE has done and that they have privately arranged for funds to bail out brokers. When asked if the regulator has been informed about the move, a senior Sebi official said that he was not aware of it. However he said: The exchange has arranged for funds privately to bail out the broker and there is nothing wrong in it.