Skip to main content

NSE cautions brokers and investors against unsolicited messages

NSE cautions brokers and investors against unsolicited messages
Leading stock exchange NSE has cautioned traders and investors against unsolicited messages being circulated by unregistered entities to induce investment and sale of shares.Earlier, BSE had also issued similar message to investors.
The direction comes after the bourses and capital markets regulator Securities and Exchange Board of India (Sebi) noticed that "unsolicited messages are being sent to induce investment or sale of the stock of certain listed companies, indicating target prices by unregistered or unauthorised entities".
"Trading members are requested to advise their clients to remain cautious on such unsolicited messages being circulated by unregistered or unauthorised entities," National Stock Exchange (NSE) said in a noticeThe exchange also said that in case the trading member "suspects that there is an unusual trading pattern" by any client then it should release the payout only after carrying further scrutiny of KYC documents to compare income range declared and value of such transactions.
The trading member should also scrutinise whether the client is individual or private corporate body and directly or indirectly connected to the company or promoters or directors of the firm.The method of acquisition of shares by client and whether the source of funds and period of holding is in line with the client's usual behaviour should also be inspected by the trading member.
The trading member should intimate the decision to withhold the payout to the client along with rationale to the stock exchange within three days of withholding of payout, the exchange said.Last week, an official had said that Sebi would look into the complaints of some individuals allegedly circulating key financial details and other information about listed companies on social media groups before they were made public.
The regulator would also seek clarification from brokerages and listed firms if such individuals were found to be associated with them, the official had added.The information about the listed companies are mostly being circulated through SMSes, WhatsApp and various social media platforms, wherein names of some established brokerage houses and exchanges are also being misused.
The official also said that while Sebi had already taken action in several such cases so far, it was investigating a number of others involving similar activities
Sebi has already taken action against several entities for providing investment advice without registration. These include MCX Biz Solutions, Moneyworld Research and Advisory, Global Mount Money Research and Advisory, Orange Rich Financials, GoCapital, CapitalVia Global Research and one Imtiyaz Hanif Khanda and his maternal uncle Vali Mamad Habib Ghaniwala. SP SBT
The Busines Standard, New Delhi, 21th November 2017

Comments

Popular posts from this blog

At 18%, GST Rate to be Less Taxing for Most Goods

About 70% of all goods and some consumer durables likely to cost less

A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposed goods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.

India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket.

For instance, if an item comes within the 12% excise slab but the effective tax is 8% due to abatement, then the latter will be considered for GST fitment.

Going by this formulation, about 70% of all goods could fall in the 18% bracket.

The GST Council has finalised a four-tier tax structure of 5%, 12%, 18% and 28% but has left room for the highest slab to be pegged at 40%. A committee of officials will work out the fitment and the council…

Coffee-Toffee, the GST Debate Continues

Hundreds of crores of rupees in the form of taxes ride on the exact categorisation of products Is Parachute hair oil or edible oil? Is KitKat a chocolate or a biscuit? Is a Vicks tablet medicament or confectionery? For the taxpayer and the tax collector, this is much more than an exercise in semantics -hundreds of crores of rupees ride on the exact categorisation.
As the government moves closer to rolling out the goods and services tax (GST) on July 1, many such distinctions are being debated so that no ambiguity remains. Not just that, the government is revisiting old tax cases that were lost over product categorisation, according to people with knowledge of the matter, presumably with a view to making sure that revenue collections can be maximised. “In the past, several tax officers had challenged some of the product categorisations, including those in the retail segment, but lost out in court or at appellate level,“ said one of the persons. “Now we have a chance to go ahead with speci…

Deposit gush:-CA Institute Bats for Special Audit