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CSE withholds pay-out

Kausik Datta & Aniek Paul

Payment default in rolling segment on Calcutta Stock Exchange (CSE) continued for the third consecutive day, forcing the authorities to abandon its pay-out obligations till the required money comes from the defaulting brokers. Wednesday was the settlement day for trades, which took place in the rolling segment on March 5.

CSE apprehends that "dubious" trades in a couple of stocks on the rolling segment led the bourse to over Rs 500 million odd default in the segment. The custodian, who was named as a party involved in the trades, declined to comment on the issue.

CSE sources said: "We are clueless about when we would be able to meet our pay-out obligations to the brokers." However, the authorities would not meet up the obligation from the corpus of the settlement guarantee fund (SGF) because they suspect that the default was pre-meditated and it was a ploy to exploit the exchange's SGF.

Lyons Range sources, however, said that the defaulting brokers had assured the bourse authorities about bringing in funds "within a couple of days."

Trading on the rolling segment had suddenly spurted in the recent past, and large volumes were being logged in a couple of stocks in trades conducted through the custodian.

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