The Group has alleged that NSE issued certain circulars in contravention to the rules and guidelines of the SEBI and thus favoured brokers over investors
Delhi-based Investor Protection Group (IPG) has filed a writ petition in the Delhi High Court (HC) against the National Stock Exchange (NSE), requesting to give directions to the Securities and Exchange Board of India (SEBI), to conduct an in-depth investigation into the alleged illegalities committed by the NSE. The petition is scheduled to be heard on 16th November.
In a release, IPG said, “We have asked court to direct SEBI to conduct a thorough investigation into the illegalities committed by the NSE and investigate if the acts of NSE are biased and are responsible for plotting loopholes in the system and to initiate appropriate legal action including cancellation or suspension of the registration/ licenses of NSE, if the same is established.”
According to the IPG, the Exchange deliberately issued certain circulars, in contravention to the rules and guidelines issued by SEBI, favouring the brokers and not to the investors. The group has also prayed to declare “those clauses of the circulars as null and void.”
Explaining the dubious role of NSE, the Group alleged that, “NSE acts as an informer to the brokers whereby they retrieve the critical information/ complaint from client and provides the information to the broker, but do not provide the complete documents /information to the client from brokers.”
It adds that, “Clients are made to fight their cases with incomplete information and as a result loose their case. NSE also does not support or provide any information about your account till they are forced by the Arbitrators.”
It has also alleged that illegal and unauthorized trading is carried out by the stock brokers under shelter of NSE. SEBI is also been named in the writ petition, because according to the group, such illegal trading are not monitored by the SEBI, as its responsibility as a stock market regulator.
The Delhi-based group has also alleged NSE for allowing brokers to make agreements/ contracts on their own without the mandatory signature of the clients required at the time of registration. The writ petition has been referred to a division Bench of Delhi HC in the category of Public Interest Litigation (PIL).
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NSE in my case appears to be hand in glove with my broker Motilal Oswal in denying justice after the white collared fraud perpetrated by Motilal Oswal
TonyRaj
NEW DELHI: Stock market watchdog Securities and Exchange Board of India (SEBI) was today asked by the Delhi High Court to examine an investor group's allegation that National Stock Exchange was acting against investors to protect stock brokers's interests.
"The issue raised by the petitioner needs serious consideration by SEBI," said a bench of Acting Chief Justice A K Sikri and Justice Rajiv Sahai Endlaw, disposing a petition by Investors Protection Group (IPG), a group of investors.
Accusing NSE of having issued some circulars deliberately to favour stock brokers, in violation of SEBI rules and guidelines, the IPG plea had sought the court's directions to SEBI to probe the issuance of those circulars.
The IPG said the bourse had deliberately issued these circulars, violating SEBI rules and guidelines, that protected investors and pleaded to the court to take appropriate legal action against NSE and declare its circulars, creating ambiguity, as "null and void."
The counsel, appearing for SEBI, said if the investors were aggrieved, they should go to the appropriate forum for redressal of their grievances.
The counsel for the investors, however, pointed out that the IPG had lodged a complaint in September but no action has yet been taken.
The group of investors also alleged NSE is acting as an informer to brokers by retrieving important information from investors and providing the same to brokers.