Bombay trade starts again
Thursday 23 March 1995
Bhagirat Merchant, president of the exchange, said: "The crisis has been resolved, and we have received all the money for the settlement. Payments will be made tomorrow, when the exchange opens."
Trading ground to a halt on Monday after a broker's default on payments amounting to 135m rupees (£2.7 million).
After three days of infighting amongst brokers, in which they refused the exchange's ultimatum to cover their losses, a solution was finally worked out yesterday.
The closure of the exchange for three days over such a relatively minor default was described yesterday as a "temporary setback" by emerging market fund managers in London. India has been one of the most popular destinations for the flood of retail investor money that has flowed into emerging markets in the past two years.
A Foreign and Colonial emerging markets spokesman, Sam Mahtani, said that the closure would have a temporary impact on market sentiment, but the company's 12-month forecast for India was positive. Foreign and Colonial has a $130m fund that invests in India.
Lazards insisted the event would be a positive development in the long term. "The Bombay exchange will have to clean up its act," a spokeswoman said. "In the short term, we expect the market to fall by 50 points for each day it remains closed. But the fundamentals are strong, it's only that the system is not able to cope with it. In fact, this is a great opportunity to buy," she said.
- 1 Sabrina Corgatelli: US hunting tourist posts picture of herself with dead giraffe after Cecil the lion outrage
- 2 Katie Hopkins reveals fear she will die during brain surgery to cure epilepsy
- 3 Edward Heath 'child sex abuse' allegation: Investigation to be held into Wiltshire police handling of alleged claim in the 1990s
- 4 Dutch King Willem-Alexander declares the end of the welfare state
- 5 Tom Cruise: Reporters banned from asking actor about Scientology
Sabrina Corgatelli: US hunting tourist posts picture of herself with dead giraffe after Cecil the lion outrage
Katie Hopkins reveals fear she will die during brain surgery to cure epilepsy
'Gene drive': Scientists sound alarm over supercharged GM organisms which could spread in the wild and cause environmental disasters
Edward Heath 'child sex abuse' allegation: Investigation to be held into Wiltshire police handling of alleged claim in the 1990s
Dutch King Willem-Alexander declares the end of the welfare state
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Landlords renting properties to illegal immigrants to face up to five years in prison
iJobs Money & Business
£21000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
Up to 70k DOE: Guru Careers: We are seeking an experienced Financial Director ...
£11000 - £50000 per annum: Recruitment Genius: This financial company offer ma...
competitive + incentives + uncapped comms: SThree: Did you know? 98% of our di...