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NSE, BSE bar 3 NSEL defaulters from trading

Source: PTI
October 31, 2013 19:57 IST
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Leading stock exchanges BSE and NSE have barred three entities from trading on their platform after they defaulted on dues in connection with Rs 5,600 crore (Rs 56 billion) payment crisis at National Spot Exchange Ltd (NSEL).

The decision to this effect has been taken by various stock exchanges in consultations with the capital markets regulator, Securities and Exchange Board of India (Sebi).

As a payment crisis involving an amount of over Rs 5,600 crore emerged at the exchange in late July, NSEL had to suspend trading following a government directive.

The exchanges have disabled Unique Client Codes (UCC) of three entities --Aastha Minmet India, MSR Food Processing and Metkore Alloys & Industries. All entities need UCC to trade on a stock exchange platform.

"In consultation with Sebi and other exchanges, as a proactive measure, to protect market integrity and to safeguard market participants' interest and as a risk management measure, it has been decided to disable UCC of above three entities from trading with immediate effect," NSE and BSE said in a similar worded circular dated October 30.

"Members are further advised not to register any of the three defaulted entities mentioned above as their clients till further notice," they added.

In a separate circular, BSE today said that it has fixed 20 per cent circuit limit for Jignesh Shah-led Financial Technologies (India) Ltd. This would be effective from Friday. 

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