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Born-again Sebi panel to resume monitoring of SEs

NetScribes/Janaki Krishnan

The November 28 meeting of the Secondary Markets Advisory Committee of the Securities and Exchange Board of India (Sebi) will discuss the status of rolling settlement, the readiness of the various stock exchanges to introduce the facility, the progress in dematerialisation and corporate governance, among other things.

The committee is meeting after a gap of nearly a year. During the period, the committee was practically defunct, discussions on and monitoring of the developments in the secondary markets were being done by Sebi's secondary market department.

S S Tarapore, former deputy governor of the Reserve Bank of India (RBI), was recently appointed the chairman of the committee.

Last week, the Bombay Stock Exchange (BSE) introduced carry forward in rolling settlement (CFRS) on an experimental basis, while the National Stock Exchange will be introducing it this week.

The committee will deliberate on the volumes generated in the 15 scrips which are under CFRS and whether it will prove to be a success based on the preliminary information available.

The readiness of the other stock exchanges such as those in Calcutta, Delhi and Ahmedabad to implement CFRS, will also be assessed at the meeting.

Sebi sources said that in spite of the initial dip in these scrips' trading volumes, they were optimistic of volumes rising once market operators realised the flexibility of the new products introduced.

The meeting is also expected to set the agenda for stock exchanges with regard to their ability to respond to unusual volatilities in scrip movements and the extent of implementation of the Stock Watch system in the exchanges.

Companies adopting good corporate governance practices in accordance with the guidelines of the Kumaramangalam Committee report, will also be discussed at the meeting, sources said.

Earlier this month, 44 per cent of the A group companies listed on the BSE had fully complied with the corporate governance norms, while the remaining companies were in various stages of compliance, according to figures put out by Sebi.

The meeting will also set the tone for the future agenda of the committee, officials said.

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