The Bombay Stock Exchange (BSE) is moving towards normalcy as far as the financial positions of the five brokers who faced a payment crisis in settlement No 12 was concerned. According to top BSE officials, the shares which were backed by securities by three of the five brokers have now been converted into cash, and their accounts show a credit balance.
The five brokers who had been identified to be in trouble in end-May/early June were Lalkar Securities, R R Mohta, S N Nangalia, S N Tara and Mefcom Securities. "The market practice is nearly back to normal. As far as these five brokers are concerned, their accounts now show a net surplus,'' says R C Mathur, executive director, BSE.
The bourse has, however, decided not to re-activate the trading rights of these five brokers. "While their liabilities towards the exchange have fallen into shape, their financial position to commence trading is extremely precarious. We will have to put them under a major scrutiny exercise before allowing their re-entry into the markets,'' he said. He added that the issue would not be considered for a long time.
He said that according to the BSE bye-laws, the exchange can accept money worth of shares instead of money under extraordinary conditions.
According to data which was released by the exchange last week, in the case of Lalkar Securities, the brokerage had deposited shares worth Rs 1.04 crore with the exchange. Of this, the exchange has realised Rs 53.04 lakh shares till now. In the case of R R Mohta, Rs 3.56 crore has been realised out of shares worth Rs 5.68 crore. The money realised in the case of S N Nangalia was Rs 5 crore(Rs 8.65 crore worth shares) while in the case of S N Tara, Rs 1.88 crore was realised out of shares worth Rs 5.19 crore. The exchange has realised over Rs 60 lakh in the case of Mefcom Securities which had deposited shares worth Rs 1.22 crore.
