NSE orders brokers to deposit margin money in advance
Mumbai: The National Stock Exchange (NSE) has threatened to deactivate terminals of those brokers who they do not replenish their margin money before exhausting their permissible limit.

The NSE already flashes warning messages on brokers' terminals when they reach 75 per cent, 85 per cent and 90 per cent of the permissible limit so as to give them ample time to arrange additional margin money. Despite such messages, some brokers were not taking steps to deposit the additional margin money exchange officials said.

Brokers, however, sought more flexibility in squaring up of positions on reaching maximum permissible limit citing Bombay Stock Exchange (BSE), which gives more time to square off positions.

However, when the market crashes, margin calls are triggered when collateral provided by investors is inadequate to cover losses. If the investor or broker is unable to provide additional margin, the collateral available is then immediately sold, causing a crash-like condition, a leading broker said.
Back to News Review index page  

Citigroup to start a $5bn infra fund
New Delhi: Global financial services major Citigroup is considering starting a $5bn debt and equity infrastructure fund in partnership with IDFC and is in talks with the government for this. Citigroup has proposed a total fund of $5 billion, of which $2 billion is intended to be equity and $3 billion for debt. The nature of approvals that the fund needs would depend on the structure of the fund.

Charles Prince, CEO, Citigroup had proposed the fund at a meeting with the Finance Minister P Chidambaram in New York earlier this year and later, some of the top bosses of the financial services major met officials in North Block.
Back to News Review index page