SEBI sounds alarm bells

MUMBAI, FEB. 11. The Securities and Exchange Board of India has sounded alarm bells over the volatility in stock markets by directing five major exchanges to impose incremental additional capital and margins on their respective top 25 brokers in the form of cash or fixed deposits only for the next four weeks.

The SEBI has withdrawn the existing facility of accepting additional capital/margins by way of bank guarantees or securities in the case of 25 brokers of National, Bombay, Calcutta, Delhi and Ahmedabad stock exchanges.

All stock indices are on the rise with the BSE Sensex crossing the 6,000 mark before closing at 5933.56 today as exchanges witnessed aggressive buying on the back of increased FII activity.

The exchanges were also directed to ask brokers who have built up sizable positions to either reduce positions or to make advance pay-in. Such brokers could also be subjected to ad hoc margins, SEBI said in a statement here.

- PTI

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Section  : Business
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