Abstract
The paper examines compliances of the margin trading rules and regulations of the Stock Exchange by trading members while serving their clients in the securities market in India. The paper applies case study approach to study the trading practices of trading members on Indian Stock Exchange systems and identifies the nature of securities market’s misuses and abuses. The paper identifies how trading members are violating and avoiding the regulatory compliances. The paper provides inputs for the development of appropriate regulatory framework for prevention of violations of rules and regulations in Indian securities market, prevention of capital market abuses and enables the investor protection. The limitation in a case study approach, the research findings and results may lack generalizability. The results may be generalized in the emerging markets. Hence, researchers are encouraged to study results further in other developed countries. The results provide critical perspectives on regulatory challenges and encourage the regulatory authorities to issue relevant guidelines to stock brokers to prevent from non-compliances of margin trading rules.
Highlights
The results provide critical perspectives on regulatory challenges and encourage the regulatory authorities to issue relevant guidelines to stock brokers to prevent from non-compliances of margin trading rules
Northern Investments, an investor aggrieved by the Arbitral Award passed by a Panel of three Arbitrators filed an application to the Appellate Panel Arbitrators of the Stock Exchange, Hyderabad for a claim of INR 74.56 million from Punjab Brokers Pvt Ltd., (Punjab), India [1]
Owing to sale of these 46,600 shares, the share price of Tele Dial recorded its historical lowest price of INR 3750 as on February 12, 2017, the dates on its shares were liquidated. Respondent submitted that it complied with all laws, rules, regulations, and circulars governing the relationship between a Trading Member and Client
Summary
Northern Investments, an investor aggrieved by the Arbitral Award passed by a Panel of three Arbitrators filed an application to the Appellate Panel Arbitrators of the Stock Exchange, Hyderabad for a claim of INR 74.56 million from Punjab Brokers Pvt Ltd., (Punjab), India [1]. Northern Investments, a Hyderabad based partnership firm (Appellant), got registered as a client for trading with the Punjab Brokers Pvt Ltd. Respondent, Punjab Brokers Pvt Ltd., (PB), incorporated under Indian Companies Act, 1956, is a trading member of the Stock Exchange, Mumbai. It is one of the leading stock broking companies in India. The range of services includes broking, investment banking, corporate advisory, and portfolio management services
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