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Sebi member calls for better
payment system
Mumbai: Prof. J.R Varma, a board member
of the Securities and Exchange Board of India (Sebi) has called for improving the payment
system of banks for effective implementation of the rolling settlement. Addressing the 7th
Annual Financial Services Convention in Mumbai, Prof. Varma said that despite Indian
markets having a efficient settlement system, the payment to the investors takes place
after 10-15 days. Prof. Varma said with rolling settlement systems in stock exchanges, the
banking system needs to be geared up in the area of payments.
At present, there were two major
bottlenecks hampering the payment system, which include the poor payment system
infrastructure and the absence of a wide network of electronic fund transfer facility.
Besides, the settlement agencies like the Clearing Corporation of the stock exchanges and
depositories not being part of the RBI's funds clearing mechanism was another major factor
delaying payments.
Prof. Varma said the market regulator was
going ahead with various reforms measures including rolling settlement. Sebi, last week
allowed voluntary rolling settlement in A group shares with Borrowing and Lending Scheme
(BLESS) and Automated Lending and Borrowing Mechanism (ALBM) facility. The issue of
rolling settlement has, however, upset stockbrokers who are unwilling to accept the new
mode of settlement for liquid counters, fearing sharp drop in their volumes.
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MFs attract deposits worth Rs
6,850cr in Apr-Dec
Mumbai: Mutual funds have attracted
net investments worth Rs 6,850 crore for the April-December period, according to the
latest data published by Securities and Exchange Board of India data. The investments have
come largely into income, money market and balance funds and fund flow after adjustments
for redemption and repurchases stands at Rs 6,850 crore. MFs had attracted Rs 59,000 crore
during the nine-month period. Total funds under asset management companies at the end of
December 2000 stood at Rs one lakh crore.
Following a downturn in the stock prices,
quantum of funds with MFs were however, down Rs 7,000 crore compared to Rs 1,07,000 crore
in March 2000.
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