BSE to Introduce Borrowing and Lending Securities Scheme - 'BLESS'

With a view to promote securities lending and borrowing activities in Indian Capital Markets, and to provide a commercially competitive product, the Exchange has planned to introduce a new Borrowing and Lending Securities Scheme (BLESS) from January 22, 2001.

In addition to the existing facilities available under the Exchange's existing Carry Forward System, the new scheme would enable borrower to withdraw the shares subject to payment of appropriate margins and risk management measures. With the introduction of 'BLESS', the existing MFCS would cease to exist.

The BLESS system would provide the facilities of lending and borrowing of securities to the members of the Exchange as well as their constituents, and will also serve the purpose of deferral of settlement obligations by netting off obligations in the Scheme with those in the normal settlement. The Scheme will enable the investors to carry forward their positions of normal settlement by paying or receiving securities lending and borrowing charges.

Sushil Bahl
General Manager
Corporate Communications

January 4, 2001