GTB:
Don't panic, SEBI tells investors
Our
Banking Bureau
26 July 2004
Mumbai:
SEBI this morning assured the investors not to panic over
the crisis in the Global Trust Bank with its chairman
G N Bajpai saying that there was no problem of settlement
and stock market will function "normally".
Bajpai
said that he had reviewed the situation in the last
two days and had asked the exchanges — National
Stock Exchange and Mumbai Stock Exchange — not
to 'dislevel' terminals of the brokers who had furnished
their deposits with GTB as guarantees.
On
the issue of suspension of trading in GTB scrip, he
told NDTV that the decision would be taken to the exchange
authorities before the trading commence on Monday.
He,
however, did not comment on whether the current crisis
was a fall out of the earlier scam involving Ketan Parekh
that had hit the bank a few years ago.
Stating
that GTB was not a very major clearing agent at the
NSE though it was active in BSE, Bajpai asserted there
was no cause for 'panic' and the exchange authorities
would give time to brokers to furnish guarantee.
He
said that authorities were asking brokers for extra
margins to replace bank guarantees and adequate time
would be given for the purpose
