ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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SEBI s Misadventure

SEBI's Misadventure D P Sharma THE unseemly tussle between the Securities and Exchange Board of India (SEBI) and the stockbroking community over registration- related issues seems to have assumed rather disturbing dimensions. With stockbrokers vehemently protesting against SEBI's authoritarian approach, trading on all the major stock exchanges has remained suspended for the past several days and an end to the boycott is still not in sight. SEBI had issued a directive asking members of stock exchanges sub-brokers and other intermediaries associated with the securities market to register themselves after paying a hefty fee by May 21. Stockbrokers contend that since they are already registered with the recognised stock exchanges they do not fall within the ambit of Section 17 of SE(R)C Act. And that since the enrolment of a member by the stock exchanges was done after a thorough scrutiny in accordance with SEBI provisions and government guidelines there is no need for further registration. Stockbrokers' case carries the support of corporate bigwigs who also have questioned SEBI's right to demand registration when brokers are already registered with their respective exchanges.

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