On 23/04/2010, SEBI vides it circular no. CIR/MRD/DMS/13/2010 issued new guidelines for Execution of Power of Attorney (PoA) by the Client in favour of the Stock Broker/ Stock Broker and Depository Participant. Generally, the brokers refused to open online trading/demat account without signing PoA by the client in favour of broker which allows the broker to trade in accounts of the clients without approval/permis [...]
Background
In order to promote transparency and accountability in administration, the Legislature enacted the Right to Information Act, 2005 which came into force on 12 October 2005. The Act empowers Indian citizens to seek information from a Public Authority, thus making the Government and its functionaries more accountable and responsible. The Right to Information Act, 2005 has converted the prevailing culture o [...]
The National Stock Exchange of India Limited & Jaipur Stock Exchange filed an appeal in the Delhi High Court against the ruling of the Central Information Commission (CIC) dated 07/06/2007 which held that stock exchange being a quasi governmental body working under the statute and exercising statutory powers has to be held to be a “public authority” within the meaning of section 2(h) of the RTI Act, 2005. T [...]
In the recent judgment of Delhi High Court in Ashwani Kumar Mittal V’s Vimla Securities Pvt. Ltd, OMP no. 341/2006, Hon,ble Judge Sh. S.N. Dhingra held that ” It is an undisputed fact that the while applying to National Stock Exchange seeking adjudication of its claims, the petitioner had requested for adjudication of his differences with the respondent within the purview of byelaws, rules and regulations of th [...]
The Information Technology (Amendment) Bill, 2008 (Bill No.96-F of 2008) was passed by the both houses of parliament on December, 2008 and received the accent of the president on 5th February, 2009. However, the Amendment Act had not yet come into force and was only for information purpose. However, there was lots of confusion about the date of “Notification” of IT Amendment Act, 2008 as per the requirements of [...]
Arbitration is an alternative dispute resolution mechanism provided by a stock exchange to resolve disputes between the trading members and between trading members & constituents (i.e. clients of trading members), in respect of trades done on the Exchange. This process of resolving a dispute is faster than other means of redressal by civil courts. Arbitration comes under the Arbitration and Conciliation Act 199 [...]
NEERAJ AARORA, AICWA, LLB, PGD (Cyber Law & DLTA), ACFE (USA)
Certain unknown persons executed fraudulent trade by selling a call option of 5500 shares of BEL Ltd. in the trading code of CM01 allotted by the broker M/s CMA Securities Pvt. Ltd. in the name of Shri M. K. Chopra. This trading had been done by using User ID and password provided to their client M/s. Sanvyy Shares Traders Pvt. Ltd based in Dwarka [...]
A "Dabba Trading" also known as "Bucketing" is the process used by brokers to route their client's trades outside the Stock/Commodity exchange. In such trading, the broker either does not execute any trade or matches and execute trades on its own terminal. "Dabba" has its origin in the developed markets where a system called bucketing prevails. Bucketing is an illegal practice where a stockbroker executes a custome [...]
