The Securities and Exchange Board of India (SEBI) will decide next step against the 116 broker accused of rigging an investment of Rs 40 billion next week. However, it was rigged in the total investment of 54 billion rupees, in which 147 brokers were found to be involved. But the market regulator is not able to take action against the 31 brokers not being registered with SEBI.
Sebi’s Board of Directors will decide on 116 registered brokers in the meeting to be held on September 18. The Economic Offenses Wing (EOW) of Mumbai Police has been found guilty of messing up with the investors’ money after investigating the NSEL case. According to sources, 17 big brokers had made a mess in 80 percent of the total amount. Legal experts say that steps such as imposing heavy fines on convicted brokers, ban on business in the stock market, or stripping of fitness status can be taken.
The matter of tampering in the amount invested by brokers through the close of about 13,000 investors is 5 years old. In this case some big brokers are also involved in the discussion. The SEBI board can also decide on some other important issues. A decision about implementation of the recommendations of the committee, headed by former law secretary T.K. Viswanathan, can also be taken. Drafting a large borrower to the corporate bond market can also be stamped in the meeting.
The motive behind this step is to reduce the burden on the banking system and create a happy corporate bond market. There is also a possibility of a decision on allowing the promoters to classify as general shareholders in the meeting. It will be necessary for the promoter to take the approval of the shareholders before taking such a step.