|
||
|
||
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Weather | Wedding | Women Partner Channels: Auctions | Auto | Bill Pay | IT Education | Jobs | Lifestyle | Technology | Travel |
||
|
||
Home >
Money > PTI > Report April 24, 2001 |
Feedback
|
|
CSE files cases against 10 defaultersThe Calcutta Stock Exchange on Tuesday filed cases under the Negotiable Instruments Act against ten of its broking entities for dishonouring of cheques. "We have filed cases at chief metropolitan magistrate's court under section 138 of Negotiable Instruments Act against the erring brokers for recovery of amounts against dishonouring of cheques issued by them to the Exchange," CSE executive director Tapas Datta said. The exchange is also planning to begin criminal proceedings against the ten entities for attachment of their properties for recovery of over Rs 920 million. "We have already received the go ahead signal from our solicitors to file criminal proceedings against the ten entities," Datta said. He said: "It will take another week to ten days to formally file criminal proceedings. The final due from them is about Rs 910-920 million." The ten entities owned by three persons -- Dinesh Kumar Singhania, Harish Chander Biyani and Ashok Poddar -- had failed to pay their dues to the exchange leading to shortfall in pay-in in March, 2001, and triggered a countrywide crash in share prices. These entities were subsequently declared defaulters and suspended from the exchange. The bourse had to use its trade guarantee fund to the extent of Rs 380 million to announce pay-outs during the three successive settlements starting March 8 as these entities failed to bring in their due amount. Subsequently, all broker directors, including president Kamal Parekh and vice-president K K Daga, had resigned from the committee. Dinesh Singhania, who was also on it, had resigned immediately after the payment shortfall issue came to light. All the ten entities were declared defaulters and suspended from trading at a committee meeting held on March 26. A section of brokers had, however, said that merely declaring the entities as defaulters would not help as it was difficult to realise the dues from them unless criminal proceedings to attach their properties were initiated. Meanwhile, the five-member CSE management sub-committee, including the executive director, will submit its report to the Securities and Exchange Board of India by May 1, on the payment shortfall, which led to a countrywide decline in share values in early March. Datta said a Board meeting was scheduled on April 28 which would finalise the draft report to be submitted to Sebi. Sebi had asked the exchange to submit a report on the payment shortfall issue by April 10. Its new committee comprising four Sebi-nominated and five public representatives in addition to the executive director had been asked to submit the report. YOU MAY WANT TO SEE:
|