New Delhi : Amid a large number of investor complaints being received by the NSE for non-receipt of funds and securities against some member brokers, regulator Sebi plans to soon take strict penal action against the wrong-doers after a thorough probe into the matter.
The National Stock Exchange (NSE) has issued a circular to “alert” its members against any non-adherence to norms about timely settlement of funds and securities in the investor accounts, after its inspections and internal audits found some of them were not “diligently adhering” to such guidelines
Sebi has now decided to thoroughly look into the matter to ensure that investors are not taken for a ride and their grievances are addressed effectively, a senior official said. Noting that such inadequacy of funds indicated “serious liquidity concerns” on the part of the concerned brokers, the NSE had asked all its members to strictly ensure timely settlement of funds in their client accounts.
When contacted, an NSE spokesperson said, “As a front-line regulator, NSE, in keeping with exchange bye laws and Sebi regulations, keeps taking appropriate action where required. This circular was issued to alert members and investors and ensure that the interest of market participants and the market as whole is safeguarded.”
The spokesperson, however, did not reply to specific queries on whether it has taken or initiated action against the members who have been found to be “not diligently adhering to the requirement of settling client accounts” in a timely manner.
With regard to a “recent case in which investor complaints have come,” the spokesperson said, “Coordinated efforts are required between the NSE, BSE and Sebi. What is required is a joint processing of claims, for the best resolution of claims and we are trying to work out commensurate modalities.”
