Brokers on Monday virtually paralysed the stock markets resorting to a nationwide one-day strike to protest the ban on carry forward trading and introduction of rolling settlement, even as SEBI promised to pursue the issue of market liquidity with RBI. Mumbai Stock Exchange recorded the lowest ever trading as the market operators abstained from trading ring with the exception of a few foreign investors who transacted small volumes of business only in 42 scrips. Trading in Delhi, Madras and Calcutta was also limited to a few counters even as brokers demanded liberal financing mechanism and bank funding to keep the market vibrant.
With a sheer Rs 7.62 crore transactions, BSE index declined by 9.77 points to 3330.98 points.
Responding to brokers` demands, chairman of Securities and Exchange Board of India D R Mehta told reporters he would pursue the issue of margins trading, a mechanism for financing stock market trade, and related bank funding as it was a matter that concerned banking authorities. SEBI had introduced the new trading norms from July 2 leading to a sharp fall in share prices and trading volumes which prompted the broking community to take up the cudgel against the norms introduced by the market regulator.
Bureau Report