The Telegraph
Since 1st March, 1999
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NSE averts payment crisis

Calcutta, April 17: Deft management helped the National Stock Exchange (NSE) avert a potential payment crisis. This would bring relief to an already battered market that was apprehensive of a settlement shortfall.

Today’s crucial settlement of trades done on the cash segment of the bourse on Thursday, Friday and Tuesday passed off with a nominal shortfall of Rs 19.7 crore in cash and stocks combined.

There were apprehensions all around that brokers who had bought technology stocks like Infosys, Satyam and Mastek on these days might not be able to fulfil their payment obligations.

Ironically, shortfall for trades done on Thursday was the least — at a little over Rs 4 crore — despite the sharp technology meltdown on that day.

Shortfall for trades done on Friday was close to Rs 8 crore and for those done on Tuesday was a little over Rs 7.5 crore.

Foreign institutional investors (FIIs) are being blamed for the crash in the price of technology shares. They dumped shares worth Rs 279 crore on Friday, and Rs 287.5 crore on Tuesday again.

But since then, they have turned buyers in equities again and over the last couple of days, FIIs acquired shares worth Rs 322.6 crore. So far in this month, they have bought shares worth Rs 120 crore.

The most threatening settlement for the cash segment having passed off without any major hiccup, all eyes are glued to the settlement for the derivatives segment.

A large number of brokers are reported to have been deactivated for not being able to pay the requisite margin for their positions on the derivatives segment.

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