NSE
orders brokers to deposit margin money in advance
Mumbai: The National Stock Exchange (NSE) has threatened
to deactivate terminals of those brokers who they do not
replenish their margin money before exhausting their permissible
limit.
The
NSE already flashes warning messages on brokers' terminals
when they reach 75 per cent, 85 per cent and 90 per cent
of the permissible limit so as to give them ample time
to arrange additional margin money. Despite such messages,
some brokers were not taking steps to deposit the additional
margin money exchange officials said.
Brokers,
however, sought more flexibility in squaring up of positions
on reaching maximum permissible limit citing Bombay Stock
Exchange (BSE), which gives more time to square off positions.
However,
when the market crashes, margin calls are triggered when
collateral provided by investors is inadequate to cover
losses. If the investor or broker is unable to provide
additional margin, the collateral available is then immediately
sold, causing a crash-like condition, a leading broker
said.
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Citigroup
to start a $5bn infra fund
New Delhi: Global financial services major Citigroup
is considering starting a $5bn debt and equity infrastructure
fund in partnership with IDFC and is in talks with the
government for this. Citigroup has proposed a total fund
of $5 billion, of which $2 billion is intended to be equity
and $3 billion for debt. The nature of approvals that
the fund needs would depend on the structure of the fund.
Charles
Prince, CEO, Citigroup had proposed the fund at a meeting
with the Finance Minister P Chidambaram in New York earlier
this year and later, some of the top bosses of the financial
services major met officials in North Block.
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