Six CSE brokers arrested

Moving the case, public prosecutor said the accused not only violated CSE conditions on payment of margin and security money, but were also involved in circular trading8212; in shares like DSQ Software and HFCL 8212; to inflate the prices of shares with a purpose to defraud general public to the tune of Rs 120 crore. In a related development, the CSE received a further boost, when it got decree from a court to attach properties of main defaulter brokers, who together owed over Rs 90 crore to the exchange.

The JPC probing the stock scam had also recommended that after determining the culpability, appropriate criminal penal action should be taken against the brokers, especially those who were broker-directors of the CSE, for exposing the investors and the exchange CSE to grave risks by their criminal negligence/deliberate failure to initiate steps for rectification of short collection of gross exposure margin by the exchange, despite their personal knowledge about the fraud.