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CSE recovers Rs 65 million from defaulters, announces pay-in

The Calcutta Stock Exchange, Thursday, said it has recovered over Rs 65 million from the sale of securities of ten of its members, declared defaulters on Monday last, while announcing successful pay-in for settlement No 151.

The governing board of the exchange had declared these members as defaulters and suspended them from membership of the bourse following failure to meet pay-in obligations of about Rs 600 million in three successive settlements.

The recovery process from the defaulters was started soon after and recovery was made within four days.

"The pay-in for settlement No 151 of the exchange has been completed successfully for a total amount of about Rs 430 million and pay-out will be done on Friday as per schedule," the CSE said in a release.

The ten members, belonging to three major entities -Dinesh Kumar Singhania, Harish Biyani and Ashok Poddar - were supposedly responsible for a countrywide crash in share prices, which started on March nine after CSE announced a Rs 950 million shortfall in pay-in number 148 which ended on March 8.

The exchange's sub-committee on defaulters, comprising Sebi nominee on the CSE Board D N Rawal, public nominees V N Reddy, Shyamal Sen and CSE president and executive director at a meeting had recommended that all the ten firms be declared defaulters and proceedings be initiated as per bye-laws of the exchange.

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