The Hindu Business Line : STP to be made mandatory by July: Bajpai

(From right) Mr G.N. Bajpai, Chairman, SEBI, with Dr S. Narayan, Economic Advisor to the Prime Minister, and Mr Jignesh Shah, MD & CEO, Financial Technologies, at a conference on `Trade Life Cycle in T+1 Settlement Era and the Necessity of Establishing the STP Link' held in Mumbai on Wednesday. - Paul Noronha

Mumbai , March 17

STRAIGHT Through Processing (STP) would be made mandatory by July and India would be the first country in the world to use this facility, stated Mr G.N. Bajpai, Chairman, Securities and Exchanges Board of India.

Mr Bajpai inaugurated the STP Conference - 2004, organised by Financial Technologies, a company that provides transaction automation technologies in equities, derivatives, forex, treasury and commodity markets.

He said that the Indian securities market had undergone a metamorphosis during the last three years and the exuberance of the Indian market had been recognised not only by investors in India but also by those abroad.

Operational risks have been minimised and safety measures have been put in place to ensure that brokers do not take positions beyond the risk management controls that have been put in place, he added.

Dr S. Narayan, economic advisor to the Prime Minister, was the guest of honour at the seminar. He noted that the most important changes have come about with the introduction of modern methods of transactions such as T+1 and STP in the capital markets. The stockholder would be able to encash his securities within 24 hours and this will change the mindset of the investors, eventually leading bank savings to the capital markets.

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