Search the Internet          Tips  Sites: Finance, Investment

Sebi issues rolling settlement list

Indian capital market watchdog Securities and Exchange Board of India has released a list of 251 shares which will move to the rolling settlement mode at all domestic bourses with effect from July 2.

The list is available at: www.sebi.gov.in/circulars/2001/CIR302001.html.

The additions will take the total number of shares in the T+5 rolling settlements to 414.

Sebi had announced in March it will be expanding its list of shares which are under rolling settlement, in order to improve trading practices.

The regulator has been under pressure to cleanse the system, after a series of scandals caused a stocks slide in March, leading to a loss of around $47 billion in market capitalisation at one time.

Under the rolling mode all deals are settled on the fifth day of transaction. It replaces a fixed weekly settlement.

Sebi had banned short sales, imposed stiffer margins and announced it will abolish carry-forward facility from July 2.

The carry-forward facility allows an investor to buy or sell shares by paying a small margin -- allowing him to take on bigger positions than he could otherwise afford.

Tell us what you think of this report