Only strong bank FDs, guarantees may be used to settle trades
The plan, yet to be finalised, would entail laying down a minimum capital or net worth and a floor credit rating criteria that banks will have to meet.
Mumbai: Only stronger could be chosen for accepting fixed deposits and guarantees that back the trading and settlement in the equity market, according to a proposal under discussion between Sebi and institutions such as stock exchanges and clearing houses.The idea is being explored to strengthen the market ecosystem amid a surge in trading volumes and faster turnaround of securities and money in the wake of shorter .
The plan, yet to be finalised, would entail laying down a minimum capital or net worth and a floor criteria that banks will have to meet.
Source: Stocks-Markets-Economic Times
