Kolkata, March 26: The Calcutta Stock Exchange on Monday announced the suspension of 10 entities belonging to three brokers after they failed to bridge their default. The ten entities, which had been served show-cause notices last week, owe the exchange a total of Rs 107 crore from the three settlements on March 8, 15 and 22.The decision to suspend the 10 entities was taken earlier in the day by the defaulters' sub-committee. The meeting was attended by CSE president Kamal Parekh, vice-president KK Daga, Unit Trust of India nominee Shyamal Sen, government nominee VN Reddy and CSE executive director Tapas Dutta apart from the Securities & Exchange Board of India representative Ms DN Rawal.
The CSE also notified the Stock Exchange, Mumbai, and the National Stock Exchange about the suspensions since the brokers concerned hold multiple cards.
A press release issued by the exchange says: "The Committee at its meeting held on Monday has accepted the recommendation of the Defaulters' Sub-Committee meeting held earlier on Monday and unanimously decided to declare the following members as defaulters and suspended from the membership of the exchange in view of their failure to meet their pay-in obligations in successive settlements of the exchange.
The defaulting entities are Mr Harish Chandra Biyani, Biyani Securities, Mr Ashok Kumar Poddar, Mrs Prema Poddar, Mr Raj Kumar Poddar, Mr Ratan Lal Poddar, Dinesh Kumar Singhania & Co, Doe Jones Investments & Consultants Pvt Ltd, Arihant Exim Scrip Pvt Ltd and Tripoli Consultancy Services Pvt Ltd.
CSE officials maintain that the exchange will initiate proceedings against the three brokers behind the suspended outfits.
In fact, Mr DK Singhania, a former president of the exchange, had issued cheques of Rs 17 crore to the exchange on March 5 towards margin money which bounced.
Mr HC Biyani, Mr AK Poddar and Mr Singhania together had a shortfall of Rs 61.30 crore in the March 22 settlement, out of the total gross shortfall of Rs 69 crore.
On the earlier settlement of March 8, these three brokers had a total shortfall of Rs 95 crore, which was later reduced to Rs 16 crore. On the subsequent settlement on March 15, these three brokers had a shortfall of Rs 22 crore.
The three brokers along with their firms took a hit when prices of Himachal Futuristic Communications Ltd and DSQ Software began hitting the lower band of the circuit filter on several days at a stretch. The HFCL counter which was ruling at close to Rs 1200, came down to Rs 193 earlier this month.
The management of the local bourse had initiated proceedings against the defaulting entities at a meeting on March 20.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
