Sebi may reconsider stand on self trade
Securities and Exchange Board of India is likely to review its decision of penalising brokers for 'self trades'. Sebi has called for a meeting of stock brokers and legal heads of stock exchanges on October 26 to discuss the matter.
Orders that match with each other with no resultant change in ownership are called self trades. Such trades have been reported in large numbers in the currency derivative segment.
Last year, Sebi issued notices to several brokers for execution of self trades and even launched proceedings to penalise them on the grounds that such transactions were manipulative.
Orders that match with each other with no resultant change in ownership are called self trades. Such trades have been reported in large numbers in the currency derivative segment.
Last year, Sebi issued notices to several brokers for execution of self trades and even launched proceedings to penalise them on the grounds that such transactions were manipulative.
Members of Parliament Hemant Tukaram Godse and Gajendra Singh Shekhawat had questioned Sebi's selective action against brokers for executing self trades. A letter written by Godse highlighted that 224 brokers on BSE and 319 brokers on NSE, including foreign players, escaped the scrutiny of the market regulator despite having executed many self trades in a single day. Sebi's action was even challenged in the Bombay HC by a Mumbai broker who was fined Rs 25 lakh for self trades.
Read More - SEBI Updates
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