SEBI asked to probe charges that NSE harming investors' interest

Stock market watchdog Securities and Exchange Board of India (SEBI) was today asked by the Delhi High Court to examine an investor group's allegation that National Stock Exchange was acting against investors to protect stock brokers's interests.

"The issue raised by the petitioner needs serious consideration by SEBI," said a bench of Acting Chief Justice A K Sikri and Justice Rajiv Sahai Endlaw, disposing a petition by Investors Protection Group (IPG), a group of investors.

Accusing NSE of having issued some circulars deliberately to favour stock brokers, in violation of SEBI rules and guidelines, the IPG plea had sought the court's directions to SEBI to probe the issuance of those circulars.

The IPG said the bourse had deliberately issued these circulars, violating SEBI rules and guidelines, that protected investors and pleaded to the court to take appropriate legal action against NSE and declare its circulars, creating ambiguity, as "null and void."

The counsel, appearing for SEBI, said if the investors were aggrieved, they should go to the appropriate forum for redressal of their grievances.

The counsel for the investors, however, pointed out that the IPG had lodged a complaint in September but no action has yet been taken.

The group of investors also alleged NSE is acting as an informer to brokers by retrieving important information from investors and providing the same to brokers.(PTI)