Stock Holding Corp established

Led by the IDBI, seven financial institutions have set up the Stock Holding Corporation of India (SHCIL) to streamline the clearing and settlement of institutional securities. Modeled after the Depository Trust Company of New York, the SHCIL aims to act as a central clearing house, reducing paperwork and physical transfer of shares. With an authorized capital of Rs. 7 crores, the corporation plans to eventually move towards a book-entry system, eliminating the need for physical safe-keeping of certificates.

You may find interesting

There was another resounding market crash. The prices early dropped from 5 to 30 points and the sales exceeded 7.5 million dollars but a moderate rally in the afternoon wiped out half the previous declines. The rally was partly due to the recovery of the Chicago wheat pit, where early losses of about 4 cents per bushel were reduced to less than 2 cents.

Trading in the Bombay cotton exchange continued to be dull. The switching up of transactions from Broach April-May to July-August contract was the main feature. Price movements were narrow in the absence of important operations.

SEBI has enlisted the expertise of prominent India-born economists, including Raghuram Rajan, Marti Subramanyam, and Kaushik Basu, to overhaul India's corporate debt market. The advisory committee recommends allowing trading in euro bonds, establishing a repo market, and introducing "debt managers" to provide two-way quotes. The panel also advocates for a more liberal view on short selling to enhance liquidity and suggests bringing private debt placements by unlisted companies under SEBI's jurisdiction.