August 27, 2007
The News Editor
The Press Trust of India Ltd.
4, Parliament Street
New Delhi – 110 001
Sub: Clarification on news item
This is with reference to the story carried by Press Trust of India, New Delhi titled “SEBI allows settlement of trade through Clearing Corporations” on August 26, 2007 which was published in various newspapers today. In this connection we would like to clarify as follows:
“The interpretation of SEBI’s decision as published in your story is wrong and misleading. The decision taken by SEBI does not mandate clearing corporation alone but provides for either clearing corporation or clearing house, as the case may be, as effective means of clearing and settlement given effective governance and risk management standards. Therefore, it is erroneous to say that SEBI has decided that all trades must be settled through recognized clearing corporations.”
It is requested that the above clarification may be published immediately, to put the record straight.
for Securities and Exchange Board of India
Dy. General Manager (Communications)