No settlement issues with stock exchanges: SEBI chief

September 30th, 2008 - 2:14 pm ICT by ANI  

New Delhi, Sept 30 (ANI): SEBI Chairman C.B. Bhave today said that SEBI is closely monitoring markets and has verified with stock exchanges that there are no settlement issues.
“Yesterday’’s settlement went through smoothly. It is expected that the settlement tomorrow also will be smooth. The clearing and settlement mechanism of the stock exchanges is a time tested mechanism, which has been tested in times of great volatility,” Bhave said.
Bhave said that at present, the rules regarding short sale are that institutions are allowed to short sell only if they have borrowed the stock on the stock exchanges.
“At present, there are no volumes in the borrowing/lending market. Therefore, there is no concern that institutions may be short selling. Short sales by retail are permissible but the stock has to be delivered on a T+2 basis. If any entity delivers short, the position is auctioned,” he added.
The Chairman further added that if SEBI finds that any institution has violated the short sale rule, it would take the most stringent action against such entity, if any.
“At present, there are no indications that such a violation has occurred,” he said. (ANI)

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