Markets regulator Sebi on Friday cancelled the registration of brokerage house Bharat Bhushan Finance and Commodity Brokers Ltd for participating in illegal ‘paired contracts’ launched by now defunct National Spot Exchange Ltd (NSEL).
In addition, the regulator has asked the broker to allow its existing clients to withdraw or transfer their securities or funds held in its custody within 15 days.
In case of failure of any clients to withdraw or transfer their securities or funds within this period, the broker will transfer the funds and securities of such clients to another broker within a period of the next 15 days thereon under the advice of the said clients.
The case relates to the participation of Bharat Bhushan Finance and Commodity Brokers in ‘paired contracts’ that did not have regulatory approval.
The broker traded in the alleged paired contracts from April 2012 to May 2013 on the screen based trading platform of NSEL on behalf of and in accordance with the instructions of t
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