The Hindu Business Line : SEBI allays fears of payment problems

The Securities and Exchange Board of India (SEBI) has said it does not anticipate any payment difficulties in trade settlements following the crash in stock markets. The assurance came in the wake of fears that many market participants may face payment problem.

SEBI had convened a meeting of officials from BSE and NSE today. This was also attended by Mr U.K. Sinha, Joint Secretary, Ministry of Finance.

Talking to newspersons after the meeting, Mr A.K.Batra, SEBI's whole time member said, "As of now there is no evidence of any market abuse. In case we find instances of manipulation, stern action will be taken against the wrongdoers."

He said sentiments played an important role in the steep fall in indices and there was no need to turn alarmist. "SEBI is monitoring the market closely and action against the wrongdoers, if any, will be taken. As of now no settlement-related issues are anticipated, there are no issues with the risk management system of the markets," explained Mr Batra.

Bombay Stock Exchange in a statement issued said ,"Trading and settlement cycles at BSE will be conducted as per schedule. BSE is also keeping a watch on the market situation, the position of the members and has collected the necessary margins. We have successfully completed the pay-ins and payouts today for May 13 trades."

Mr Ravi Narain, Managing Director, NSE told reporters that intra-day margin collected has amounted to Rs 360-370 crore . On Thursday and Friday settlement cycles were smooth, and no settlement issues are anticipated in the market.

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