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Our Bureau

MUMBAI, Feb. 15

PANDEMONIUM prevailed in the securities market on Friday as bond dealers tried desperately to adapt to the newly started Negotiated Dealing System (NDS).

According to dealers, the NDS was not fully compatible with the system in banks. The RBI server was also very slow. As a result, settlements were delayed.

The confusion was compounded, as all the dealers were not linked to the NDS and Clearing Corporation of India.

According to an RBI official, "these are technical glitches and in due course, they will be overcome. This is just the first day and we will have to give the system some more time.''

The slowing down of the system was due to the volumes, which were far more than anticipated.

"This problem would be sorted by tomorrow,'' said the official.

However, one dealer said, "There are just too many permutations and combinations -- some players are members of the NDS, while other are members of CCIL, some are members of both.

Bids less than Rs 20 crore would be settled by the CCIL, while bids more than Rs 20 crore would be settled by the PDO. There was utter chaos in the market.''

The treasury head of a nationalised bank said, "Since it is the first day, there are bound to be some hiccups, but the system has to be more streamlined.''

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