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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 9319
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   Posted: 19/Mar/2008 at 9:55am |
Another blow to broking business?
Institutional investors will now have to pay margin on their share transactions in the cash segment from April 21, in the same way as applicable to other investors, the Securities and Exchange Board of India said in a circular issued on Wednesday.
SEBI also operationalised short selling and securities lending and borrowing from the same date, April 21. It had specified the broad framework for this in December 2007 but had not operationalised it, pending clarifications from the tax authorities.
Currently, margin payment in cash transactions is applicable to retail investors and to those who do proprietary trading. It is a percentage of the value of the stocks that investors have to pay upfront upon placing their order with their brokers.
This is being done “in order to provide a level playing field to all the investors in the cash market as in the case of the derivatives market,” said SEBI.
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Life can only be understood backwards—but it must be lived forwards
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nitin_jagtap
Senior Member
Joined: 29/Dec/2007
Location: India
Online Status: Offline
Posts: 1283
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Posted: 27/Mar/2008 at 2:36pm |
First cat is out of the bag
| Prime Sec declares Rs 23cr writedown |
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| BS Reporter / Mumbai March 27, 2008 |
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Stock broking company Prime Securities today announced a writedown of Rs 23 crore for the losses they suffered during the recent stock market crash. Prime Securities along with its subsidiary Prime Broking Company is the first broking houses to publicaly announce losses.
In a release issued to the Bombay Stock Exchange (BSE) the company said that the loss in the Futures & Options segment for the current financial year, till date, marginally stood under Rs 3 crore. However, a provisioning of Rs 23 crore was made by the firm for depletion in value of the securities.
The profit of the company in capital market segment for the current financial year, till date, stood at approximately Rs 38 crore.
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Warm REgards
Nitin Jagtap
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luke123
Senior Member
Joined: 02/Sep/2007
Location: India
Online Status: Offline
Posts: 427
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Posted: 27/Mar/2008 at 2:40pm |
Originally posted by nitin_jagtap
First cat is out of the bag
| Prime Sec declares Rs 23cr writedown |
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| BS Reporter / Mumbai March 27, 2008 |
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Stock broking company Prime Securities today announced a writedown of Rs 23 crore for the losses they suffered during the recent stock market crash. Prime Securities along with its subsidiary Prime Broking Company is the first broking houses to publicaly announce losses.
In a release issued to the Bombay Stock Exchange (BSE) the company said that the loss in the Futures & Options segment for the current financial year, till date, marginally stood under Rs 3 crore. However, a provisioning of Rs 23 crore was made by the firm for depletion in value of the securities.
The profit of the company in capital market segment for the current financial year, till date, stood at approximately Rs 38 crore.
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Looks like it is on their proprietary book. Or is it the amount they couldn't recover from their customers during Jan mayhem??
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nitin_jagtap
Senior Member
Joined: 29/Dec/2007
Location: India
Online Status: Offline
Posts: 1283
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Posted: 27/Mar/2008 at 2:50pm |
No mention ...hope its from the clients who have defaulted (atleast some chance of recovery may be there )...on their own books unlikely but we never know.
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Warm REgards
Nitin Jagtap
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gopal
Senior Member
Joined: 26/Jan/2008
Online Status: Offline
Posts: 913
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Posted: 27/Mar/2008 at 4:03pm |
Originally posted by luke123
Originally posted by nitin_jagtap
First cat is out of the bag
| Prime Sec declares Rs 23cr writedown |
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| BS Reporter / Mumbai March 27, 2008 |
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Stock broking company Prime Securities today announced a writedown of Rs 23 crore for the losses they suffered during the recent stock market crash. Prime Securities along with its subsidiary Prime Broking Company is the first broking houses to publicaly announce losses.
In a release issued to the Bombay Stock Exchange (BSE) the company said that the loss in the Futures & Options segment for the current financial year, till date, marginally stood under Rs 3 crore. However, a provisioning of Rs 23 crore was made by the firm for depletion in value of the securities.
The profit of the company in capital market segment for the current financial year, till date, stood at approximately Rs 38 crore.
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Looks like it is on their proprietary book. Or is it the amount they couldn't recover from their customers during Jan mayhem??
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It must be clients money that they are unable to recover ...... but my broker always takes cheque within 3 days of my buying anything, how come these guys never took. Maybe will try & open account with this brokerage 
I just hope that they did not consider the F & O business to show "income from other business" to share holders.
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Women are like the stock market Coz they're irrational n can bankrupt u if u're not careful
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 27/Mar/2008 at 5:45pm |
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Jaykumar who owes Prime was very bullish as one could make out from his Tv appearances. He has made some terrific calls in this market the main being Aban where he made a 200 bagger but as they say leverage can get anyone anyday at anytime.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 9319
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Posted: 27/Mar/2008 at 7:04pm |
Sorry to hear about it. Wasn't he a batchmate of Mr. Samir Arora at IIT? Was Mr. Jaykumar the one who reportedly is a good singer & sang few numbers on a CNBC show like...kuchh to log kahenge...? These Brokers induced & instigated their clients to play F&O bcoz it helps them generate income. Ultimately life is great leveller....
Well, Mr. Market sings a different tune which can be music to some ears depending on position.
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Life can only be understood backwards—but it must be lived forwards
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xbox
Senior Member
Joined: 10/Sep/2006
Online Status: Offline
Posts: 2001
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Posted: 27/Mar/2008 at 7:11pm |
Broking is oldest business. Right ? 
Few months back, I worte that NBFCs will be at highest point in this/the peak...now 9 months of pain..... 
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Don't bet on pig after all bull & bear in circle.
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