Is NSE harming investors: HC asks Sebi

Accusing NSE of having issued some circulars deliberately to favour stock brokers,in violation of SEBI rules and guidelines,the IPG plea had sought the court’s directions to SEBI to probe the issuance of those circulars.

The IPG said the bourse had deliberately issued these circulars,violating SEBI rules and guidelines,that protected investors and pleaded to the court to take appropriate legal action against NSE and declare its circulars,creating ambiguity,as “null and void.”

The counsel,appearing for SEBI,said if the investors were aggrieved,they should go to the appropriate forum for redressal of their grievances.

The counsel for the investors,however,pointed out that the IPG had lodged a complaint in September but no action has yet been taken.

The group of investors also alleged NSE is acting as an informer to brokers by retrieving important information from investors and providing the same to brokers. The investors also accused NSE of providing information to investors/clients only after they are ordered to do so by an arbitration award.

The group further alleged NSE is allowing brokers to make agreements on their own without mandatory signature of the clients required at the time of registration.

The investors group also alleged SEBI was shirking its responsibility and was not ensuring proper implementation of directions,guidelines,bye-laws for protection of investors at large and not regulating the market as required for the smooth running of financial institution.

It is also not taking appropriate steps for the protection of the small investors,the IPG plea added.

It also alleged the regulator and NSE are acting in collusion to protect the interests of stock brokers.