Chennai, Nov 3: The Madras Stock Exchange (MSE) is introducing the Modified Carry Forward System (MCFS) from today (Thursday, November 4). MSE is the only stock exchange to have obtained the final approval from the Securities and Exchange Board of India (Sebi) to implement MCFS in south India.Initially, only seven scrips in compulsory demat mode are brought under MCFS. The shares covered are that of Reliance Industries, Reliance Petroleum, State Bank of India, Tisco, Telco, Larsen & Toubro and Pentafour Software, according to a MSE press release.
Sebi has given in-principle approval for MCFS in May this year, imposing certain conditions like introduction of a Settlement Guarantee Fund, depository participation and online surveillance for implementing MCFS.
MSE says it has subsequently complied with all these conditions to the satisfaction of Sebi and has obtained the final approval for MCFS during September 1999. The software for MCFS has been, it claims, undergoing rigorous tests through mock trading by member brokers of MSE for the past several weeks. Now, the system is fully geared up for implementation, it said.
MSE also claims that trading volumes and delivery percentage have improved in recent times. The introduction of MCFS, it is said, is expected to further trigger off activity at MSE.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.