NSE defers sub-broker diktat implementation

The National Stock Exchange on Friday decided to postpone the implementation of discontinuance of sub-broker which was to come into effect from 2 February, 2004.

The exchange in its circular to all trading member said the exchange has decided to defer the implementation after receiving representation from trading members expressing difficulties in submitting the application for appointment of sub-broker before the stipulated time frame. The new dates in this regard will be announced soon, the circular added.

However, it may be noted that the amendments to the Sebi (stock-brokers & sub-brokers) regulations referred to in the aforesaid circular are already in force, the NSE circular said.

According to market analysts, it is a positive development for the market and this will definitely improve sentiment among brokers.

A leading NSE broker said, "It was necessary for the feel good factor to continue in the market. The stipulated time was too short and the implementation will definitely hamper volumes at the exchange. Sandeep Mehta, CEO Gulita Securities, a NSE member said, "It a positive development as it will increase volumes at the exchange."

Pashupati Advani, member of BSE and NSE said, "There were lot of practical possible to execute, as the brokers are not geared up at this point of time. But it will happen."

V N Singhania, vice chairman, Association of NSE Members of India, western region said, Its a positive step and it will help to improve the compliance level.