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Saturday, June 21 1997

Coimbatore SE members allowed to furnish personal guarantee

OUR BUREAU

COIMBATORE, June 20: The Coimbatore Stock Exchange (CSX) is unlikely to restrain its members from furnishing unlimited guarantee to other exchanges. Also, the exchange may not compel its 57 corporate members to furnish the indemnity. CSX president D Balasundaram feels steps being contemplated by other exchanges to restrain their member brokers from providing personal guarantee to other exchanges is illogical. ``When the member is being permitted to give such guarantees to banks and financial institutions how can we protest against his decision to give guarantee to other exchanges?'' he asked.

CSX, he said, would rather wait until a settlement is found by the National Stock Exchange in this regard. Moreover, the delivery volumes at CSX are quite low. Though both the issues, that of restraining CSX members from providing indemnity to other exchanges and invoking unlimited guarantee for the corporate members, are not included in the agenda for the routine council meeting to be held on June 28, this could be raised by members. Balasundaram also felt the time to be inappropriate to take the matter to the council, especially since it had created ``lot of rebellion among the NSE members''.

The vexed issue of selecting the next Executive Director for the exchange is also expected to be sorted out at the council meeting. Balasundaram disclosed that the two names, that of K V Mathew, the current chief executive (projects) of CSX, and that of a former employee of SIV Industries Ltd, would be ranked and sent to Sebi for final selection. The exchange has been without an ED since September 9 when V Parthasarathy, had to make a premature exit. Since then Mathew's name has been doing the rounds. The delay, in selection, Balasundaram claimed was due to the decision of CSX to seek ``clarifications and further references from the former employers of both the aspirants''. Mathew was earlier the ED of the Cochin Stock Exchange.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.

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