Financial Daily from THE HINDU group of publications
Tuesday, Jul 27, 2004
Financial Daily from THE HINDU group of publications Tuesday, Jul 27, 2004 |
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Markets
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Financial Services Money & Banking - Private Banks No impact of exposure not covered by collaterals in GTB Our Bureau
Mumbai , July 26 THE Securities and Exchange Board of India (SEBI) said that exposure not covered by collaterals placed in the Global Trust Bank (GTB), post RBI's moratorium, will not create any adverse impact and there will not be any need to deactivate trading terminals. SEBI has reviewed the likely implications of the moratorium imposed on GTB, with stock exchanges and depositories and has taken appropriate precautionary steps, says a SEBI press release. GTB is a clearing bank only for BSE. "It has been ascertained from the BSE that pay-in amount made through GTB as clearing bank of the BSE has been made only by a few members and the amount involved is not significant. Further, these members have made alternative arrangements," says the press release. Amount of bank guarantees and fixed deposits of GTB furnished by members towards their base minimum capital or additional capital is moderate. Relevant exposure not covered by other collaterals is also not high as to create any adverse impact, according to the statement. The RBI has clarified that operation of demat accounts in GTB will not be affected. The market regulator also warns that the behaviour of trading in the scrip of GTB would be closely watched by the stock exchanges and appropriate surveillance action would be taken. "Any price manipulation in the scrip of GTB or any manipulative operations in demat accounts will invite severe regulatory action," says the release.
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