Investors Protection Group requests HC for investigation of NSE affairs by SEBI
Moneylife Digital Team 08 November 2011

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).

Comments
sanjay
9 years ago
what happened Mr manoj . Pls. contact me on 9312264276 for any help in this matter . I can surely help and guide you to the best of my ability .
manoj somawanshi
9 years ago
am a victim of unauthorised trade .Request your support and guidance on the same.Please call me at 9881713693 /8600195553.
sanjay
9 years ago
what ahppened to this PIL ?
tonyraj
10 years ago
SEBI is an eyewash
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
krishnan
1 decade ago
most of the stock brokers are not adhering to the rules and regulation of SEBI formed for the protection of small investors . small investors are being cheated by stock brokers and they are not getting justice from higher authorities mainly because they are not able to fight individually against the fraudulent and illegal activities of big stock brokers. investor protection group would really be relief for such small investors to raise their voice in appropriate forums.
pramod kumar
1 decade ago
NEWS IN ECONOMIC TIMES TODAY

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.
deepak sahney
1 decade ago
yes, we need groups like IPG who on behalf of the investor, will fight and regain lost confidence of small retail investors in various asset classes. I support IPG wholeheartedly. GO IPG GO
Rishikesh
1 decade ago
I support IPG and their initiative. Well Done.
Dushyant Bhalla
1 decade ago
Well Done IPG, awaiting your SUCCESS and the success of many other innocent investors like me. GO IPG GO
Rahul Singal
1 decade ago
Welcome IPG, Thanx for standing up against the corruption of our system. Its about time these organisations learnt a lesson. WE WILL NOT BE TAKEN FOR A RIDE!! I support IPG. GO IPG GO
Aparna Krishnamurthy
1 decade ago
The IPG is definitely a welcome initiative to safeguard the interests of innocent investors. GO IPG GO
Jain Pal Jain
1 decade ago
Brokers are not following SEBI guidlines in letter & spirit.SEBI imposes token penalty wheneve the voilation is detected without considering the possible sufferings of investors.SEBI should impose examplary penalties on voilations.
Ridhima Kumar
1 decade ago
I support INVESTOR PROTECTION GROUP. The next best thing to the Anti Corruption Scheme of Anna Hazare. I think the next slogan that India would now rock to "GO IPG GO"
ketan sahney
1 decade ago
its a welcome initiative by IPG, my support and good wishes are with you.
Nandan Singh
1 decade ago
I support IPG and their cause and concern. WAKE UP SEBI AND NSE, INVESTORS ARE AWARE AND KICKING..
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