Broker alert!!!

[soft_trader]

They had higher liabilities then the payment guarantee fund, If they dont pay up then the brokers will go to court.

To update you Mr. G, a PIL has been already filled on Friday 16/08/2013 against NSEL to Mumbai High court. This PIL has been submitted by Investors association of India. Brokers are also threatening NSEL that they will file a criminal and money laundering case against NSEL. To inform you Anand rathi, IIFL, Motilal Oswal are among the top list of brokers who has the highest open positions.

This move by Investors association has been taken on the back of the payment schedule which NSEL announced on 14/08/2013. NSEL payment schedule mentions that it will settle the obligations by over 30 weeks upto March 2014. So 7 months!!! and brokers are not at all convinced by this payment schedule of NSEL.

 

[Mr.G]

To update you Mr. G, a PIL has been already filled on Friday 16/08/2013 against NSEL to Mumbai High court. This PIL has been submitted by Investors association of India.

I got confused with investor and brokers. Big deal. The main agenda is that they are going to court because they failed to give accurate records of the guarantee taken from the participants.

 

[soft_trader]

Till date we traders raised questions about safe brokers, trustworthy brokers etc. and we always talked about the brokers credibility.

Now it's the time to think differently. The exchange can also go bankrupt.

Don't worry guys, that day will not come, as this is the key source of tax revenues for Govt. and will take care of every exchange. Govt. will act in favor of investors to keep their faith & keep the business going.

Kishore bro, That day has indeed came. NSEL defaulted today on their first scheduled payment.

 

[whisky]

@soft_trader

Bro, Govt. is putting pressure on NSEL to resolve the issue. I agree, NSEL missed on the first promised payout, but rest assure Govt. will not let the investors suffer, payment can be delayed but they will get that.

 

[kickass]

by the way for those who are saying nothing will happen read on...
i had put in a pay out request on fri with BMA wealth creators and till date my request has not been processed. after calling many times i was told today that since they have taken a hit in the NSEL fiasco, payouts for all clients will be delayed from now on for sometime even though my payout was from NSE F&O !
if client funds are not touched then why are payouts being delayed? All those who keep saying that client funds are not touched and exchaneg will safeguard everything should not be so naive to have blind faith from now on ! better be careful than regret.
the NSEL situation has already started affecting payouts in FO and equity seg even though technically it shouldn't.

 

[mprakash1972]

It's good that discount brokers like Zerodha,Tradesmartonline and RKSV are not members of NSEL.I hope NSE and BSE have much better risk management than MCX and NSEL.
regards
prakash

 

[kickass]

^ that is not the point. the point if tomm is any issue happens with nse/bse what is the guarantee that these brokers won't touch client funds? if they can do it now they will do it later on as well regardless of what SEBI or anyone says.

 

[mprakash1972]

Govt has given enough powers to SEBI to prosecute defaulters
http://www.indianexpress.com/news/now-sebi-gets-power-to-arrest-and-detain/1145102/

regards
Prakash

 

[kickass]

^ and when has sebi done anything concrete? all they do is slap stupid fines which are pocket change! there have been hundreds of instances when sebi has goen soft and let ppl get away with small fines and stuff for pric rigging and what not. even in case of default its usually years before clients get any money. sebi is a big joke ! they were sleeping throughout whiel the NSEL fiasco happened. they have no realtime surveillance worthy of anything.

 

[mprakash1972]

Let us hope such a bad thing never happens!
regards
prakash