• PAGE ONE
• INDEX
• HOME

Coimbatore brokers divided on strike call

Our Bureau

COIMBATORE, July 20

THE call for a nation-wide strike by the stock brokers on July 23 to protest against levy of turnover tax by SEBI and introduction of rolling settlement has evoked mixed response from the stock broking community in Coimbatore.

While some argue that the rolling settlement has led to drying up of business for the stock brokers, there was also strong support for the decision which was described as a step in tune with the current trading trend.

But many member-brokers conceded that they were kept in the dark about the decision to go on strike and even two days after the call for a strike, they did not hear from the top brass of the two broker associations (BSE and NSE) as to what their long-ter m game plan was.

Speaking to Business Line, Dr K. Sabapathy, Vice President, Coimbatore Stock Exchange (CSE), said whenever new technology was introduced, there was a hue and cry from the share broking community.

Mr Krishnaswamy, Director, Single Window Securities Ltd, said the strike was an opportunity to express the share trading community's resentment against the SEBI orders regarding rolling settlement.

Mr K. Annamalai, Director, DJS Stock and Shares Ltd and a former CSE President, said there was no coordinated effort by both the broking outfits in mobilising opinion for the strike.

On the turnover tax, Mr Annamalai clarified that it was only a registration renewal fee levied by SEBI against which the brokers had gone to court and lost. The tax was payable for the first five years at the rate of 0.01 per cent of the turnover and sub sequently, for every block of five years, only Rs 5,000 was payable.

With the court order in favour of SEBI, he doubted if the latter would opt for a compromise particularly in view of the fact that most of the NSE members had already completed the first five years of membership and their future renewal payments to SEBI w ould be meagre.`We are on a weak wicket', he said.

He said SEBI had not barred any member for non-payment of the levy but whenever any approval was sought for purposes like derivative trading etc it insisted that the member applicants clear their arrears.