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SEBI seeks details of `double pay-in' from NSE, NSCCL

Ashok Jainani

MUMBAI, Aug. 9

THE Securities and Exchange Board of India (SEBI) is seeking details from the NSE and its clearing company, National Securities Clearing Corporation Ltd (NSCCL), about brokers who have allegedly availed of the ``double pay-in'' facility and the causes fo r the same.

The SEBI Chairman, Mr D.R. Mehta told Business Line that SEBI is ascertaining the facts from NSCCL. ``At present, we are ascertaining the facts whether it is (double pay-ins) right or wrong. Once we are satisfied that if something wrong has been done, we will take appropriate action,'' Mr Mehta said.

SEBI is asking NSE and NSCCL to furnish the date-wise and time-wise details of holding statements of those clearing members who have so far availed the facility of second pay-in at NSCCL over the last one month. The details include brokers' name, scrip n ame and quantity of shares that were delivered in the second pay-in. Most important of all was whether the exchange had obtained permission from SEBI to introduce the practice of second pay-in on the same day, especially after the pay-out was declared, S ebi sources said.

``SEBI is seeking to analyse the data to establish whether the brokers had the stock in their possession before the pay-in time as claimed by them to NSCCL,'' SEBI sources said.

In order to establish, or otherwise, brokers' claim, SEBI is also seeking data from the Central Depository Services (India) Ltd (CDSL). This will be crucial for SEBI to analyse whether brokers had the stock before pay-in time or they received the same in the pay-out and delivered through the second pay-in.

SEBI'S move follows reports of double pay-in at the NSCCL since introduction of rolling settlement system. Stock operators have found a novel method to defeat SEBI's very objective of introducing rolling settlement. Through the facility of second pay-in at the NSCCL, brokers have been taking arbitrage positions across the exchanges such as BSE and NSE and in the process, creating artificial volumes.