Search the Internet          Tips  Sites: Finance, Investment

Striking NSE brokers demand word with govt, Sebi

Expressing concern over the dip in volumes with the introduction of new trading system, striking National Stock Exchange brokers on Monday demanded a dialogue with the government and Sebi to break the impasse.

"The strike is not the only solution. We will like to have discussions with the FM, who is at present not available due to the UTI fiasco and the beginning of monsoon session of the Parliament," NSE board member, Vinod Jain told reporters in New Delhi on behalf of the Association of NSE Members of India.

He said the brokers, quite unwillingly, had resorted to abstaining from trading to highlight the issues regarding the weak surveillance and monitoring mechanism of Sebi and were not against the reforms, including rolling settlement.

There should be an alternate arrangement like margin trading, stock lending and bank finances, which are available in the international markets, he said.

"We cannot be pushed to rolling settlement without providing for alternate system," Jain said.

He said NSE daily volumes have fallen to Rs 10 billion from a high of Rs 150 billion and BSE volumens have gone down to Rs 5 billion from Rs 50 billion. He added that drastic reduction in volume would ruin not only the capital markets but the economy as a whole.

On Bhatt committee's recommendations, he said, there should be review of turnover tax, if possible by the same person, since the brokerage had gone down "significantly" and brokers were "willing to negotiate with Sebi on the issue".

YOU MAY ALSO WANT TO READ:
Most retail stock brokers strike work; volumes hit

Tell us what you think of this report