NSE suspends two brokers, declares one as defaulter

MUMBAI, NOV 7: The National Stock Exchange (NSE) has declared Neeraj Kumar Singal as defaulter and suspended two brokers on account of failu...

MUMBAI, NOV 7: The National Stock Exchange (NSE) has declared Neeraj Kumar Singal as defaulter and suspended two brokers on account of failure to fulfill their obligations to the exchange. This is to take effect from the close of business hours of November 6, 1998, said a NSE statement.

Singal was not permitted to trade from June 12, 1998 for non-payment of margins and has been declared as a defaulter on account of his not bringing in funds to fulfill his obligations, the statement said. Singal’s open positions in the settlement of June 12 were closed out and since he did not fulfill his funds pay-in obligations in respect of the earlier settlement, the securities pay-out due to the member were withheld and sold and the proceeds were appropriated against the outstanding dues.

During his meetings with the NSE authorities, the member had committed definite schedules of payment, which he did not adhere to. “Further, Singal did not appear before the relevant authority who had afforded a personal hearing tohim,” the statement said.

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Singal’s bank guarantee was invoked and his cash deposit with NSE was also appropriated towards the dues, reducing his outstanding dues to Rs 12.29 lakhs. The exchange and clearing corporation will initiate legal process to recover the outstanding amount of Rs 12.29 lakh and other dues from the member, it said.

“Though advised, the member failed to clear his dues, furnish a bank guarantee towards the security deposit and replenish the cash deposit.Further, the member did not appear before the relevant authority who had afforded a personal hearing to him,” the exchange said.

NSE stated that though the member failed to bring in the requisite funds to meet his settlement obligations, the settlement was completed with the clearing corporation stepping in.

NSE and clearing corporation would initiate necessary legal process to recover the outstanding amount of Rs 12.29 lakh and other dues from the member.

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The suspension of Globe Stocks & Securities Ltd (GSSL) and EmergingPrimary Securities Ltd (EPSL) has also been on account of their failure to abide by the directive of NSE and clearing corporation for a prolonged period.

GSSL and EPSL had not brought in funds towards payment of outstanding dues. In view of this, the trading facilities were withdrawn more than a year ago.

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