Top brokers have been arrested in the NSEL scam, according to Business Standard:
City police’s Economic Offences Wing tightened the noose on commodity brokers by arresting Anand Rathi Commodities Managing Director Amit Rathi, India InfoLine Commodities vice president Chintan Modi and Kochi-based Geojit Comtrade’s whole time director C P Krishnan for their alleged involvement in the scam, EOW sources said.
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According to NSEL data, brokers were manipulating client codes to the tune of 3,00,000 times, after the trade was carried out on the exchange and then they transferred the same to other names.
It may be noted that in equities and commodities, changes in client codes are allowed only in a genuine case. But in this case, changes in client code were effected to transfer profit and loss to launder money.
This is good news. SEBI should probe such activities by brokers as well – they routinely do this, and too many times, in the equity markets too!… (Read On...)
