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CSE liquidates TGF to meet payment shortfall

The Trade Guarantee Fund (TGF) of the Calcutta Stock Exchange has been partially liquidated to meet the payment shortfall during the pay-in for settlement number 149.

In addition, the exchange authorities also had to invoke bank guarantees and fixed deposits of the defaulting brokers submitted by them as margin money.

CSE Executive Director Tapas Dutta, said that after all such adjustments, the exchange had to liquidate the TGF to the tune of Rs 220 billion to meet the shortfall.

These adjustments, Dutta said, had helped the stock exchange to overcome a potential payments crisis from taking place for two consecutive settlements.

Meanwhile, the exchange has taken steps to formally announce the names of the defaulting brokers, which according to the CSE official, would take some time.

Dutta said that as the pay-in for settlement number 149 was successfully completed, pay-out was being carried out as per schedule.

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