General Trading Chat

Snake.Head

Well-Known Member
In other news
MARKET MANIPULATED AT NSE, SCAM RUNS INTO BILLIONS
huge scam seems to be on the verge of being unearthed at the National Stock Exchange of India. The scam which is estimated to run into crores relates to leakage of all important market price data. An internal correspondence reveals that top executives of NSE allegedly gave faster access to a select band of brokers who minted money worth several billion.

The alleged scandal was unearthed by a Singapore-based whistleblower who informed about it to the DGM, Marketing Regulation Department of SEBI. Sources said that Finance Ministry has initiated a probe into the racket which at the moment seems to be the tip of the iceberg.

In his complaint the whistleblower has alleged that market was manipulated at NSE for the past 4 years as a nexus of employees and brokers laid its hands on information of market price ahead of the rest of the market.

The NSE is supposed to give market price information and access to every broker at the same time. However in this case the employees provided early information and access to select brokers. Obviously in Stock market whoever gets early access and information makes a lot of money than the rest.

The whistleblower has informed the SEBI that estimates of such gains to the nexus of brokers and employees could be more than several thousand crores. “We can’t figure out exact numbers. However, the scam is big and very much organised. At the moment it would seem to sabotage the enquiry if we take names of the executives and the brokers,” said a source to India Samvad.

Suspicious of the ongoing racket, some leading stock brokers of Mumbai later complained the matter to NSE management. Instead of plugging the loopholes, NSE instructed its subsidiary company Omnysis to charge extra money to brokers for facilitating early information. Some brokers did pay this service fee too. The whistleblower says that in this way NSE converted bribe money to a service fee. It is alleged that some top brokers of Mumbai went ahead of greasing the palms of key data managers at NSE to get early market data from its system. “ In fact some employees of the NSE gave faster access to a few brokers who made huge money in over last 4 years,” reveals the complaint sent to SEBI’s market regulation department.

Noted market columnist Sucheta Dalal writes on her website that , “Ater five months of silence, multiple agencies have woken up to the possible dangers of large-scale market manipulation by large institutional traders who run high-frequency trading (HFT) programmes in India. A whistleblower’s letter to the Securities and Exchange Board of India (SEBI) detailed how certain institutions registered for HFT were allowed to profit illegally by the NSE’s insiders. The letter, written in January 2015, was addressed to SEBI’s deputy general manager BK Gupta.”

It is a market where every microsecond that you gain in executing high-speed trading orders is worth several hundred crore rupees in profits. Large investment institutions pump money into expensive technology and servers get co-location advantage by instaling them inside the Exchange’s premises. The whistleblower’s letter explains in detail how the NSE’s insiders allowed some chosen traders to benefit through faster connectivity, a day after day. These high-frequency trades contributed to the huge froth of trading volumes on the Exchange.

http://indiasamvad.co.in/exclusive-...ional-stock-exchange-scam-runs-into-billions/
 

TraderRavi

low risk profile
Current margin is 16k per lot overnight,and for intra its 7k.

IF the contract size increase to 5L then the overnight margin will be 45k and for intra it'll be around 22k.

IF the contract size increase to 10L then the overnight margin will be 80k and for intra it'll be around 47k.

I'm a 1 lot(50NF) trader and it looks like it'll affect me.Its like playing on a margin amount only.

This mandate only for NF or all the derivative segments?(Tatasteel Fut etc)
for all F&O.....
 

jagankris

Well-Known Member
In other news
MARKET MANIPULATED AT NSE, SCAM RUNS INTO BILLIONS
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As per NSE website

The Securities & Exchange Board of India (SEBI) has approved providing Direct Market Access (DMA) facility and has issued circular no.MRD/DoP/SE/Cir-7/2008 dated April 03, 2008

Direct Market Access (DMA) facility through Computer to Computer Link (CTCL) allows members to provide direct trading terminals only to Institutional clients through various connectivity modes. Direct Market Access (DMA) is used to describe clients / investor accessing the market directly using CTCL software of a trading member and routing the orders through the trading member’s infrastructure.

Members seeking permission for offering Direct Market Access (DMA) are required to ensure compliance with the minimum conditions specified in the SEBI circular
 

Dax Devil

Well-Known Member
This SEBI move may or may not achieve the intended goal of saving the gullible, under-captialized small traders from the harmful addictive exposure to the derivative market, but one thing it surely will achieve - the harmful consequences of Prohibition era of USA. There was hardly any reduction in the drinking population because of it but bootlegging became a big business for the underworld, giving birth to the likes of mafioso Al Capone.

So, thanks to the natural stupidiy of bureaucrats, it is going to be party time for the bucketshop operators. Enlist the services of Mumbai's celebrated dabbawala community. Let the dabba trading begin in full swing.
 

rahulmalik

You only lose what you cling to.
Discount brokers are dead. Its a move lobbied by full service brokers...
quite possible. i dont see a strong reason to make such move otherwise. given that majority of the retail brokers trade in losses, this would further worsen the situation.

Discount brokers, or trade/order based brokerage (irrespective of volume), will get a big blow. this would bring their revenues to less than half, without any change in their expenses.
 

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