Just a couple of months after being pulled up by the Competition Commission of India for anti-competitive practices in the ETF segment, the NSE has come under the scanner once again. The Delhi High Court has asked the SEBI to investigate into allegations leveled against NSE in a PIL filed by Investors' Protection Group ('IPG'). The PIL alleges that the NSE has issued certain circulars which violate SEBI guidelines and favor intermediaries like the stock brokers.
The matter which came up first on the 8th of November was postponed to the 16th. The Learned Judge acknowledged that the PIL was filed in public interest. The Court in its order on the 16th asked SEBI to investigate into the allegations.
The petitioners allege that NSE has been collecting information from the investors, and also has been receiving information relating to disputes with brokers. NSE then, it is alleged, passes this information to the brokers who use this to their advantage. Hence it is alleged that NSE has been taking measures against the investors and favoring the brokers all throughout.
A order against NSE can have major economic consequences on the exchange.
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