Centre, RBI usher in Ways & Means Advances

The Centre today signed an agreement with the RBI to formally usher in the new system of Ways and Means Advances (WMA) proposed in the 1997-98 Union Budget for bridging the Government’s temporary mismatches of receipts and expenditures. The agreement also puts an end to the four-decade-old system of issuing ad-hoc Treasury Bills to the central bank for financing the Centre’s Budget deficit. The agreement was signed by the RBI Governor, Dr. C. Rangarajan, and the Union Finance Secretary, Mr. Montek Singh Ahluwalia.

BSE may adopt Hong Kong model for depository

The BSE is likely to adopt the Hong Kong model for the depository which it proposes to set up along with a clearing house. The clearing house will be set up with Bank of India Shareholding (BoISH), Mr. M.G. Damani. President, BSE, said here today. Addressing the general body meeting of the exchange, Mr. Damanl said that the Hong Kong model is best suited and the depository there is willing to extend help to the BSE. Meanwhile, the RBI has given the go-ahead to BoISH to also act as a depository instead of setting up another company.

Panel for radical changes in share transfer process

The Chandrasekharan Committee, set up by the SEBI, has favoured “a radical and paradigm shift” in the share transfer process to improve investor confidence and foster a healthy development of the capital market. In its draft report the Committee has said in no unmistakable terms that each of the market constituents — the broker, clearing corporation, stock exchange, the issuing companies or the share transfer agents (STA) — should accept their part of the responsibility.

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