Securities and Exchange Board of India chairman UK Sinha on Friday ruled out any systemic risk in the stock markets in the wake of the payment crisis at National Spot Exchange Limited (NSEL).
Sebi has, however, sought details from various brokers about their direct and indirect exposure to NSEL. The regulator is also probing whether brokers have safeguards to ensure that the problems do not spill over to the equity markets.
“We examined things yesterday morning, and even today. So far as the securities markets are concerned, everything seems to be normal, and in order. All the payouts and pay-ins are happening and there is no risk to the system,” Sinha said on the sidelines of the Lalit Doshi Memorial Lecture here.
As several brokers and investors are present in both commodity and equity segments, there is a potential systemic risk from issues of potential defaults spilling over to the stock market.
On the other hand, sources said the Forward Market Commission (FMC) has started finalising its report on the payment issue and circumstances that led to the crisis.
“We have asked NSEL for some information about how they are planning to honor their settlement obligations. We found that the short selling condition was not being followed by this exchange,” FMC chairman Ramesh Abhishek told a business news channel on Friday.
“Co-ordination is happening (between FMC and Sebi) that I can tell you. We are on top of the situation, we are reviewing it, things are perfectly normal and settlements are happening. Pay-ins and payouts are happening. We are also coordinating with the government and FMC,” Sebi chairman said late on Friday evening.
FTIL plunges by over 21%
Mumbai: Shares of Financial Technologies India continue to fall for the second day today closing down by over 21 per cent amid problems at group entity National Spot Exchange Ltd (NSEL). FTIL settled at Rs 151.25, down 21.12 per cent from its previous close on the BSE. In intra-day trade, the stock nosedived 44.98 per cent to 52-week low of Rs 105.50.pti