Rediff Logo
Money
Line
Channels: Astrology | Broadband | Chat | Contests | E-cards | Money | Movies | Romance | Search | Weather | Wedding
                 Women
Partner Channels: Auctions | Auto | Bill Pay | Jobs | Lifestyle | TechJobs | Technology | Travel
Line
Home > Money > Business Headlines > Report
March 16, 2001
Feedback  
  Money Matters

 -  Business Special
 -  Business Headlines
 -  Corporate Headlines
 -  Columns
 -  IPO Center
 -  Message Boards
 -  Mutual Funds
 -  Personal Finance
 -  Stocks
 -  Tutorials
 -  Search rediff

    
      



 
 Search the Internet
         Tips
 Sites: Finance, Investment
E-Mail this report to a friend
Print this page

Sebi probe finds huge short sale at CSE

Aniek Paul

The Sebi probe at the Calcutta Stock Exchange has unearthed huge short sale by a leading Bombay-based broker in HFCL and DSQ Software, the two stocks in which the Calcutta-based brokers suffered huge losses over the past few weeks.

A three-member Sebi team questioned exchange officials for nearly three hours Thursday.

The Sebi team collected data on positions of individual brokers in the two stocks in the two settlements, 148 and 149, between February 23 and March 8.

Among other details sought by the Sebi team were the net positions of the three brokers who defaulted last week, and their associate firms.

According to sources, the probe may continue on Friday, and the Sebi team may examine details like margin coverage.

Besides the huge short selling in these two stocks, the data collected by the Sebi team indicated delivery-based selling of over Rs 1.20 billion by the Bombay-based broker on CSE, sources added.

The broker had the highest sale position in both the settlements in each of these stocks individually. Sources, however, refused to quantify the short sale position held by the broker, but maintained that it was 'significantly high'.

Market sources said the Bombay-based broker, active in arbitrage and badla financing, was operating on behalf of a leading Bombay-based operator now reportedly in deep trouble.

The non-delivery-based selling could have been caused by supply mismatch.

The heavy selling by the Bombay-based broker held the Calcutta market in balance as the bull cartel, which defaulted in the last settlement, was buying the two stocks in large volume.

Powered by

ALSO READ:
The Rediff-Business Standard Special
The Budget 2001-2002 Special
Money
Business News

Tell us what you think of this report