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Friday, Apr 02, 2004

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SEBI yet to decide on loss in ONGC trading

Our Bureau

Mumbai , April 1

SEBI is yet to find a solution to compensate the loss suffered by ONGC shareholders who on Monday sold shares in excess of what they were allotted.

According to sources, SEBI and the stock exchanges met on Thursday to sort out various issues relating to the allotment process and to find out where the problem lay in the allotment of shares by MCS, the share registrar for the ONGC public issue. It was decided that the issue would be decided next week after the settlement for Monday's trades was completed on Friday.

Sources said the exact shortfall in the shares and the amount of loss suffered would be known only after the completion of the settlement.

However, stockbrokers said several of their clients suffered losses of around Rs 30-40 per share on Monday as they had covered all the shares sold by them. "The loss suffered by my clients would not be known from the settlement process," said a broker.

The stock exchange officials said the settlement for all trades done on Monday will be on Friday and any shortfall in securities would be settled through the auction process. However, the officials did not elaborate on who will bear the losses.

Meanwhile, most investors received shares in their demat account on Thursday. However, some were still awaiting them till late evening. Officials at NSDL and CDSL said shares in most of the investor demat account has been credited.

The fact that ONGC shares were credited in most of the investors account was also seen from the sharp FIIs inflow on Wednesday. The stock price of ONGC closed at Rs 831.05 on the BSE compared to its previous close of Rs 840.45.

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