Financial Daily from THE HINDU group of publications
Tuesday, Nov 18, 2003
Financial Daily from THE HINDU group of publications Tuesday, Nov 18, 2003 |
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Stock Exchanges Markets - Stock Markets BSE imposes special margin on 96 stocks Our Bureau
Mumbai , Nov. 17 AFTER the National Stock Exchange (NSE), it is the turn of Bombay Stock Exchange (BSE) to impose special margins on brokers' positions. The BSE today imposed special margins on 96 stocks, of which 35 are from the A group, in the cash market. Some of the frontline stocks on which BSE has imposed special margins include Reliance Industries, Infosys Technologies, Tata Motors, Wipro, Tata Steel, BPCL, HPCL, ONGC, SBI and Satyam Computers. All these stocks are part of BSE Sensex. These are the same stocks, which are active on the derivatives segment of the NSE. The BSE in a notice to its members said special margins on these 96 stocks will be imposed on the basis of member-wise gross purchases or sales positions (client wise net). Among the A group stocks, the BSE has imposed special margin of 10 per cent, both on the buy side and sell side, and in the B-1, B-2 and Z group shares, the margin is between 10-25 per cent. In some cases, the margins are only for buying the shares. Despite the impositions of the special margins, the BSE Sensex closed higher on Monday. The Index gained 28.47 points and closed at 4,940.23. Other broader indices also gained. On the NSE, S&P CNX Nifty gained 17 points to close at 1,579.90. Brokers said the stock market moved up despite the imposition of margins mainly due to lower volume on the BSE compared to the NSE and also the overall cash market volume being much smaller than the derivatives market. Last week, the NSE had imposed ad-hoc margins on the brokers' positions in the derivatives segment, and this had resulted in the brokers off-loading their positions resulting in fall in stock prices. On an average, the turnover on the NSE's derivatives segment is around Rs 8,000-8,500 crore, while in the cash segment, the turnover is around Rs 6,000 crore (BSE and NSE combined).
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