Sebi considering simultaneous transfer of funds and securities
Calcutta: In its attempt to ensure that settlement processes in stock exchanges are speeded up, the Securities and Exchange Board of India (Sebi) is exploring the possibility of simultaneous transfer of funds and securities in settlement systems. Sebi executive director, Mr. Pratip Kar, stated that the idea was at an exploratory stage and National Securities and Depository Limited was being asked to prepare a paper on the subject.

To ensure this, the payment system of the exchanges will have to match the securities settlement system. And this is possible only when the depositories themselves transfer the limited funds necessary to meet settlement obligations. Currently, settlement funds are being transferred by the clearing banks of the respective stock exchanges.

If the amendment comes through settlement funds, which normally take three days to be transferred, will be completed within minutes by the depositories. This would mean that the depositories will have to be granted limited banking license for them to act like a bank. Glogally, depositories have a license to clear settlement funds.

NSDL managing director C B Bhave stated that they will take international practices into account in preparing this paper, and then assess whether the system will be feasible given the Indian laws and capital market system.
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Nasdaq fall checks upward trend in stock market
Mumbai: After the five-day successive bull run, the stockmarkets reacted sharply on Thursday with the Sensex losing over 100 points, in tandem with the 250 points drop on the Nasdaq.

The 30-share sensex opened on a weak note at 4,406.62 against the previous close of 4,433.61 and gained marginally in mid-session to touch intra-day high of 4,412.20. At the closing level of 4,325.47 the sensex lost 108 points, or 2.4 per cent, on the day. On NSE, the S&P CNX Nifty caved in 31.45 points to close at 1380.45.

There was no major institutional activities witnessed on the bourses. Foreign institutional investors (FIIs) have continued to be net buyers on bourses.

There was selective buying in scrips like Mastek, DSQ Software, Tata Infotech, BFL Software and Himachal Futuristic Communications (HFCL). Mastek hit the upper circuit filter of 12 per cent to close at Rs 1,449 against the previous close of Rs 1,294 on the BSE.

Among old economy stocks, the scrips that met with major selling pressure were M & M (11.98 per cent loss), HPCL (11.97 per cent), BPCL (11.82 per cent) and Bharat Forge (9 per cent). Major oil stocks came under selling pressure today as market sentiments turned bearish on account of government stance going slow on disinvestment in oil sector PSUs, according to dealers.
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