In the National
Spot Exchange Ltd. (NSEL) crisis case trading clients had earlier complained
about brokers alleging that they were involved in different fraudulent activities
in regards to trading on the NSEL platform. Hence it was not surprising that
the trading clients have now filed different cases against top five brokers for
mis-selling and assuring them to invest in agriculture commodities.
It is in context
with the Enforcement Directorate’s (ED) process of top officials of broking
firms to establish their role in the 5,600 crore settlement crisis which broke
out in July 2013. Some broking firms had considerably high exposure in NSEL.
Among them were Anand Rathi with a 629 crore exposure, India Infoline
Commodities with 326 crore exposure and Motilal Oswal Commodities with a 263
crore exposure. Phillip Commodities and JM Financial are both with a 140 crore
and 90 crore exposure respectively. SEBI has also launched a probe into
alleged mis-selling of products by some brokers with the assured returns from
commodities traded on the NSEL and is looking into various complaints against
brokers, including false assurances, inducements and parody, trading without proper
authority from clients, misuse or illegal modification of unique client code,
funding by NBFCs related to the brokers and non-receipt of payouts by clients.
Trading clients
have filed recuperation cases in the Bombay High Court against Anand Rathi,
India Infoline Commodities, Motilal Oswal Commodities and Phillip Commodities. Only
time will tell if these trading clients will get justice in legal system or
not. We can hope that they will receive justice in the least possible time, by
putting full-stop to their long awaited suffering.
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