October 20, 2011

Notice

Subject: Using Auction Mechanism of BSE for internal shortage of shares under CSE-BSE arrangement.

Trading Members of the Exchange are aware that at present the internal security shortage (Where both buying and selling member are CSE members) were closed out at Exchange (CSE) level on pay-in /payout date. The highest of the buy rate, closing rate on T date, closing rate on T +1 date, closing rate on T+2 date and BSE Auction rate was considered for calculating the close out price.

The exchange has now decided to use the BSE Auction Mechanism to close out such shortages where in BSE will auction the shares on behalf of CSE and deliver the shares to CSE for onward delivery to the buying broker. BSE will be charging one percent of the auction price + applicable taxes as their service charge which will be debited to the settlement account of the defaulting member on T+3 days.

This arrangement has come into force with immediate effect.

Satyabrata Sahoo

GM (Stock Exchange Operation)