Page 174 - DCOM510_FINANCIAL_DERIVATIVES

Unit 11: Clearing and Settlement

Ltd., ICICI Bank, IDBI Bank, IndusInd Bank, Kotak Mahindra Bank, Standard Chartered Notes
Bank, State Bank of India and Union Bank of India.
Every Clearing Member is required to maintain and operate clearing accounts with any of the
empanelled clearing banks at the designated clearing bank branches. The clearing accounts are
to be used exclusively for clearing & settlement operations.

Caselet The Hyderabad Stock Exchange Limited

apid growth in industries in the erstwhile Hyderabad State saw efforts at starting
the Stock Exchange. In November, 1941 some leading bankers and brokers formed
Rthe share and stock Brokers Association. In 1942, Mr. Gulab Mohammed, the
Finance Minister formed a Committee for the purpose of constituting Rules and
Regulations of the Stock Exchange. Sri Purushothamdas Thakurdas, President and
Founder Member of the Hyderabad Stock Exchange performed the opening ceremony of
the Exchange on 14.11.1943 under Hyderabad Companies Act; Mr. Kamal Yar Jung Bahadur
was the first President of the Exchange. The HSE started functioning under Hyderabad
Securities Contract Act of No. 21 of 1352 under H.E.H. Nizam’s Government as a Company
Limited by guarantee. It was the 6th Stock Exchange recognised under Securities Contract
Act, after the Premier Stock Exchanges, Ahmedabad, Bombay, Calcutta, Madras and
Bangalore stock Exchange. All deliveries were completed every Monday or the next
working day.

The Securities Contracts (Regulation) Act, 1956 was enacted by the Parliament, passed into
Law and the rules were also framed in 1957. The Act and the Rules were brought into force
from 20th February 1957 by the Government of India. The HSE was first recognised by the
Government of India on 29th September 1958 as Securities Regulation Act was made
applicable to twin cities of Hyderabad and Secunderabad from that date. In view of
substantial growth in trading activities, and for the yeoman services rendered by the
Exchange, the Exchange was bestowed with permanent recognition with effect from
29th September 1983. The Exchange has a significant share in achievements of erstwhile
State of Andhra Pradesh to its present state in the matter of Industrial development.
The Hyderabad Stock Exchange Ltd., established in 1943 as a Non-profit making
organisation, catering to the needs of investing population started its operations in a
small way in a rented building in Koti area. It had shifted into Aiyangar Plaza, Bank Street
in 1987. In September 1989, the then Vice-President of India, Hon’ble Dr. Shankar Dayal
Sharma had inaugurated the own building of the Stock exchange at Himayathnagar,
Hyderabad. Later in order to bring all the trading members under one roof, the exchange
acquired still a larger premises situated 6-3-654/A ; Somajiguda, Hyderabad - 82, with a
six storied building and a constructed area of about 4,86,842 sft (including cellar of 70,857
sft). Considerably, there has been a tremendous perceptible growth which could be
observed from the statistics.

The number of members of the Exchange was 55 in 1943, 117 in 1993 and increased to 300
with 869 listed companies having paid up capital of ` 19128.95 crores as on 31-03-2000.
The business turnover has also substantially increased to ` 1236.51 crores in 1999-2000. The
Exchange has got a very smooth settlement system.

Source: http://hseindia.org/abouthse.htm

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