BSE declares six defaulters

The five other brokers are: Kishore Janani, HV Shah, PJ Shah, Raman V Dalal and ICP Securities. All these brokers had been debarred from trading for over a year, hence the exchange has decided not to use the trade guarantee fund TGF to settle the investor grievances, and alternately auction their trading rights.

According to JC Parekh, president of BSE, Pankaj Shah had introduced a huge chunk of ITC shares, besidesother stocks into the BOLT system. The value of these stolen shares accounted to over Rs 1.5 crore.

A considerable chunk of these shares had also reached Canbank way back in August this year. Interestingly, according to sources an FIR first information report was also not filed against this broker, which prompted a few governing board members to call for legal action. Moreover, some of these shares were also stolen from the company while in transit to the investors.

Besides, the governing board also approved the sale of two defaulter cards previously held with the exchange. Both the cards, according to Parekh, were sold at an average price of Rs 1.11 crore. One of the cards was acquired by SBI Securities.

Once the exchange declares a broker as defaulter, the assets of the broker, including his membership card and deposits will be impounded and his liabilities will be adjusted.