sachin (GM) 13 November 2011

Pil against sebi and national stock exchange

Writ Petition has been filed by Sachin Bhardwaj , Honorary Secretary INVESTOR PROTECTION GROUP, against Securities and Exchange Board of India (SEBI) and National Stock Exchange (NSE), in the interest of the Public at Large, Seeing the gravity of the Case Hon’ble Justice Vipin Sanghi has referred it to Division Bench of Hon’ble High Court, Delhi in the Category of PIL and will be heard on 16 November.

Trading members are involved in inducement of simple, ignorant and unfamiliar persons to enter into derivative market and are made the victims of Illegal unauthorized trading a white Collar Organised Crime unnoticed by Regulatory Authorities. The National Stock Exchange is biased towards Brokers and are acting against the interest of Protection of Investors they can be seen issuing circulars violating the SEBI Guidelines and Circulars to provide benefits to Brokers and is causing serious injury to the investors. The Investors are made to fight their cases with the Incomplete documents that are not provided by Brokers & NSE and hence most of the investors are not able to present their case properly and get Justice.

Complainants may share their grievances on investorprotectiong@yahoo.com & at 9810933322, 9810045020.

The matter has been published in the magazine "Money Life".

https://www.moneylife.in/article/investors-protection-group-requests-hc-for-investigation-of-nse-affairs-by-sebi/21244.html

PRESS – RELEASE

1. Certain Circulars of NSE have been deliberately issued to over rule the Guidelines and circulars issued by SEBI to provide unjust benefits to Brokers and are causing injury and irreparable damages to the Investors. We have asked Court to declare those Clauses of the Circulars as null and void.

2. IPG has asked court to “direct SEBI to conduct a thorough investigation into the illegalities committed by NSE and investigate if the acts of NSE are biased and are responsible for plotting loopholes in the system and to initiate appropriate legal action including cancellation / suspension of the registration / licenses of NSE if the same is established.”

3. Mr. Sachin Bhardwaj Honorary Secretary of IPG said “The Stock brokers are invading the right to privacy, a fundamental right to life under article 21 of constitution without taking proper authorization by secretly recording the personal / private Conversation of Client or any family member after trading is over without informing /warning them that the call is being recorded like that in the Banking sector. The same recordings are being used to mislead and to abuse the process of law.”

The Rulings of Supreme court in this context are carelessly ignored and Guidelines are required to be issued for Recording the Conversation and should be allowed only in the official trading hours only with the intimation to Client and in accordance with the law. In case SEBI / NSE has allowed the illegal recording without taking the approval from the concerned government authority and without supervising / issuing strict guidelines to be followed they are also partners in the crime involved and may be prosecuted along with brokers.

4. 4. Mr. Pramod Kumar, President of IPG adds “Illegal unauthorized trading is being carried out by the Stock brokers under the umbrella / shelter of NSE and is not monitored as desired by SEBI. Trading members are involved in inducement of simple, ignorant and unfamiliar persons to enter into derivative market and are made the victims of illegal unauthorized trading, that remains unnoticed by NSE and SEBI. Number of investors directly affected with this Nexus will be the biggest in the History of the SCAMS ever reported in India."

SEBI states that Every market intermediately is under obligation to exhibit highest standards of professionalism and integrity in the interests of capital market whereas fact is that the Regulatory authorities are not initiating any strict action against this wrong practice.

5. NSE acts as an informer to the Brokers whereby they retrieve the critical information /Complaint from Client and provides the information to the Broker but do not provide the complete documents /information to the client from Brokers and the clients are made to fight their Cases with incomplete information and as a result loose their case. NSE also does not support or provide any information about your account till they are forced by the Arbitrators.

Moreover, Investor Service Cell exposes your case to the Brokers but Brokers firmly says that they will speak at the right Platform i.e Arbitration. Accordingly, the Platform is created for Brokers to Fight against Client and with sudden magic produces / discloses certain non-executed documents (got signed by client through misrepresentation) and other evidences that never existed before and Client may not be aware about those facts.

Illegal unauthorized trading is being carried out by the Stock brokers under the umbrella / shelter of NSE and is not monitored as desired by SEBI. Number of investors directly affected with this Nexus will be the biggest in the History of the SCAMS ever reported in India.

5. 6. The Stock Brokers are deliberately allowed to be Free to make one sided Agreements /contract on their own which are required to be signed mandatory by the clients at the time of registration and the objective of having uniform formats is yet not achieved. Regulatory Authority deliberately keeps one end loosened to provide benefits to brokers.

Deliberately the loopholes are plotted and the ends are kept loosened by NSE and not monitored by SEBI for providing the benefit to the trading members in legal proceeding against their unauthorized /illegal and fraudulent acts.

INVESTOR PROTECTION GROUP and PEOPLE FOR THE NATION have come into existence to help / guide the affected persons without any Charges. You may call on 9810933322, 9810045020 and share grievances against Share Brokers / SEBI / NSE / MCX on investorprotectiong@yahoo.com . Be careful, you may be the next victim of the ongoing Organised White Collar Stock Market Scam.

Reply Follow

6 Replies

Kumar Doab (FIN) 13 November 2011

Your initiative and effort is appreciable. Kindly post your complete contact details with address.

sridhar pasumarthy (ADVOCATE) 13 November 2011

Dear Sachin,

Thanku for ur information.

Democratic Indian (n/a) 14 November 2011

PM chose Bhave as Sebi chief on Chidambaram's advice

NEW DELHI: Prime Minister Manmohan Singh had overruled advice from two of his closest aides - Montek Singh Ahluwalia and C Rangarajan - and opted to go with then finance minister P Chidambaram's view while appointing C B Bhave as the chairman of the Securities and Exchange Board of India (Sebi).

Documents accessed by TOI show that Ahluwalia, deputy chairman of the Planning Commission and Rangarajan, chairman of the Prime Minister's Economic Advisory Council, had backed the idea of giving an extended term to M Damodaran as he enjoyed a "high reputation among the investor community".

Both had also informed the prime minister that "Sebi's overall performance under the stewardship of Damodaran had been good and there had been nothing amiss in the performance of Sebi during his tenure."

Chidambaram differed. He said there were "serious concerns about the ability of Damodaran to pull along as a team player", which he felt would "impose great stress on the system."

Besides, the then finance minister was also apprehensive about Sebi's image among stakeholders. He had provided a series of instances where he felt Sebi could have performed better. "In the last year, regrettably, communications between the government and Sebi have virtually broken down," he had written in his note.

Instead, Chidambaram recommended Bhave, who was then chairman of NSDL, saying he had an impeccable record and fulfilled "all the requirements for being appointed as chairman of Sebi." Bhave had also previously worked at Sebi.

After considering all the views, the PM decided to go ahead with Chidambaram's advice as he felt it would "not be desirable to have as chairman of Sebi, a person who does not enjoy the confidence of the finance minister at a time when the capital markets are passing through considerable turbulence."

Bhave was appointed Sebi chief in February 2008 for a three-year term. His role during his stint as NSDL chief came under a cloud due to the entity's links to the IPO scam. At the time of the appointment itself, an arrangement was made that Bhave would maintain an arms-length distance on issues related to NSDL. Subsequently, the Sebi board gave a clean chit to NSDL and Bhave, a decision that was taken up in the Supreme Court by activist Prashant Bhushan. Following a court directive, Sebi was forced to review its decision.