Karvy, Indiabulls barred

The news on TV says Karvy and Indiabulls among others have been barred from the markets.

Although the implications on the retail account holder are not yet clear anyone having a clear picture could give his views on this matter.

If I remember rightly one member Mohammedbinhaid has claimed to be an RM at Indiabulls. Well Mohammedbinhaid any idea whats going on ?

UPDATE

"ALL CLIENTS CAN EXECUTE TRADE VIA THEIR RESPECTIVE BROKERAGE".

SEBI SAYS BAN ON BROKERAGES ONLY ON PROPERITARY ACCOUNTS.

REGARDS
Mohammed Bin Haid

Thanks for the quick response Mohammedbinhaid.

Regds.

NEWS ON NDTVPROFIT:

Gagan Banga of Indiabulls summoned by SEBI.

Gagan Banga of Indiabulls have to called to SEBI office for hearing.

regards
mohammed bin haid

now say, who is the best DP? Anydoubt ICICI.. our money is safe there boss.

atlast, people with ICICI will have the last laugh....

Satya

I have an account with ICICI... SHCIL had also gone thru similar issues in the past and have now cleaned up..

In light of the SEBI interim order passed yesterday on IPO scam, it has been clarified by the regulator that clients of the affected broking houses can transact normally on both the cash and derivates segment of both the exchanges. There is no ban/bar on clients trading in their client accounts through us. Please note that client business will remain unaffected and we will continue to service our esteemed clients as usual. We will also entertain new clients in opening their trading as well as demat account.

You are also requested to note that the order against Indiabulls Securities Ltd is based on factually incorrect data which the company is contesting and is filing its objections/ clarifications to SEBI. The company is praying for reconsideration of the order and for immediate withdrawal of directions in so far as Indiabulls Securities Ltd is concerned.

The only allegation against Indiabulls Securities Ltd in the 252 page order is that the company received 13,939 shares of TCS after its IPO from 559 different accounts. The order implies that the 559 account holders applied for TCS IPO on behalf of Indiabulls Securities Ltd to corner TCS shares by multiple retail applications and hence the 559 clients transferred 13939 shares to Indiabulls Securities Ltd account immediately after the TCS IPO. However, the 559 account holders who transferred the 13,939 TCS shares to Indiabulls Securities Ltd, transferred the shares in the CLIENT MARGIN ACCOUNT of Indiabulls Securities Ltd for their trading purposes towards meeting their margin requirements as per the stock exchange rules and regulations. Indiabulls Securities Ltd accepted these shares in its client margin account in its capacity as a broker and for the limited purpose of facilitating the clients transactions. As per the rules, a broker can not trade on behalf of a client without receiving margin from the client either in the form of cash or shares. On sale of the TCS shares by the 559 clients, the proceeds of the sales were transferred by Indiabulls Securities Ltd to the same individual client accounts who had transferred these shares to Indiabulls client margin account for meeting margin requirements. Indiabulls Securities Ltd or any of its group companies have absolutely no role in either the IPO application of these 559 clients or any economic interest or any other interest whatsoever in the sale proceeds arising out of the sale of 13,939 shares or any financing of any of the IPO applications of the 559 clients.

these are the times when one really understands the meaning of RELIABILITY.

icici may be a sitting duck, compared to its peers but a reliable sitting duck.

regards,
jdm.