A day after crisis erupted at the National Spot Exchange ltd, capital market regulator Sebi on Friday said it is on “top of the situation” and there is no systemic risk as settlements are happening.
NSEl, which offers an electronic platform for spot market trading in various farm commodities as also bullion contracts, yesterday said it suspended trading in all contracts except “e-series” until further notice following a government order. While the exchange has said it would meet all its payment and settlement obligations, its decision to defer the settlement to a 15-day period has raised concerns about potential payout defaults. Share prices of group firms MCX and FTIl dived 40 percent and 83 percent respectively in two days.
“So far as the securities market is concerned, everything seems to be normal and in order. All the payouts and pay-ins are happening and there is no risk to the system,” Sebi chairman UK Sinha told reporters here this evening after delivering the lalit Doshi memorial lecture. A number of brokers are present in both commodity and equity segments and there were fears that a potential systemic risk could emanate from issues of potential defaults spilling over to the stock market as well.
“We are on top of the situation, we are reviewing it, things are perfectly normal and settlements are happening,” the chairman further said. FTIl shares plunged for the second consecutive-day today on the BSE to end at Rs 151.25, down 21.12 per cent. This came after yesterday’s loss of over 62 per cent, while MCX declined 20 per cent to Rs 512. Sinha further said Sebi was also coordinating the government and commodity market regulator Forward Market Commission (FMC).