ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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crore. Apart from the PSU shares being now traded as group B securities, a major factor has been the repeated renewal of transactions as a backdoor form of badla by brokers with the connivance of the stock exchange authorities. Renewals have reportedly increased from about 20 per cent of transactions to over 40 per cent, with some select cash scrips crossing even 80 per cent, forcing SEBI to ban renewal of transactions in non-specified shares and insist on the seven-day settlement procedure. SEBI has also insisted on strict segregation of clients' and brokers' accounts as required by the government notification amending the BSE by-laws effective from December 5, 1994. Finally, in the face of the sharp fall in share prices following the reduced net investment by Flls, the government has, through an ordinance, opened the doors to the writing and trading of options in stock markets and substantially strengthened the regulatory powers of SEBI over capital market intermediaries as well as corporate bodies insofar as they concern the issue of capital, transfer of securities and other related matters.

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