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BSE to take 'appropriate action' on Sebi's order in NMDC case
Leading stock exchange BSE on Friday said it will take "appropriate action" in the matter of market regulator Sebi censuring the bourse for allegedly flouting norms during the offer for sale (OFS) of state-owned NMDC.
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New Delhi: Leading stock exchange BSE on Friday said it will take "appropriate action" in the matter of market regulator Sebi censuring the bourse for allegedly flouting norms during the offer for sale (OFS) of state-owned NMDC.
"Currently, our team is studying the order and we will take appropriate action," BSE Managing Director and CEO Ashish Kumar Chauhan said at the sidelines of an Assocham event here.
The Securities and Exchange Board of India (Sebi), last week, pulled up the BSE for failing to comply with prevailing norms for an OFS issue by NMDC in 2012.
The regulator also asked the exchange to appoint an independent consultant to review the sequence of events at the time of the OFS and suggest 'remedial' action.
The issue relates to BSE's decision to accept bids for 4.55 crore shares after the deadline.
On 12 December 2012, the promoters of NMDC had offered to sell 39.65 crore shares through the OFS mechanism of BSE and the National Stock Exchange of India Ltd.
After the closure of the share sale that day at 3.30 pm, Sebi had sought bid data from the two exchanges, to which BSE first stated that the final cumulative bids received at its platform were for 29.91 crore shares.
In another intimation to Sebi later that evening, BSE revised the figures upward by 4.55 crore shares to state that the final cumulative bids received by it were for 34.47 crore shares. Subsequently, Sebi sought clarification from BSE about the huge difference between the two figures.
The market watchdog alleged that even though bids were placed by the custodian Citibank NA within the cutoff time, the transfer of funds to the clearing corporation had taken place only at 5.09 pm on December 12, 2012, and the bids were confirmed between 6.22 pm and 6.31 pm.
According to norms, the placing of orders and funds on the exchange system in an OFS should take place during the trading hours only.
"Currently, our team is studying the order and we will take appropriate action," BSE Managing Director and CEO Ashish Kumar Chauhan said at the sidelines of an Assocham event here.
The Securities and Exchange Board of India (Sebi), last week, pulled up the BSE for failing to comply with prevailing norms for an OFS issue by NMDC in 2012.
The regulator also asked the exchange to appoint an independent consultant to review the sequence of events at the time of the OFS and suggest 'remedial' action.
The issue relates to BSE's decision to accept bids for 4.55 crore shares after the deadline.
On 12 December 2012, the promoters of NMDC had offered to sell 39.65 crore shares through the OFS mechanism of BSE and the National Stock Exchange of India Ltd.
After the closure of the share sale that day at 3.30 pm, Sebi had sought bid data from the two exchanges, to which BSE first stated that the final cumulative bids received at its platform were for 29.91 crore shares.
In another intimation to Sebi later that evening, BSE revised the figures upward by 4.55 crore shares to state that the final cumulative bids received by it were for 34.47 crore shares. Subsequently, Sebi sought clarification from BSE about the huge difference between the two figures.
The market watchdog alleged that even though bids were placed by the custodian Citibank NA within the cutoff time, the transfer of funds to the clearing corporation had taken place only at 5.09 pm on December 12, 2012, and the bids were confirmed between 6.22 pm and 6.31 pm.
According to norms, the placing of orders and funds on the exchange system in an OFS should take place during the trading hours only.
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